VINCI - 2005 annual report

7.2 OTHER FINANCIAL EXPENSES
(in € millions) 2005 2004
Change in present values (27.5) (27.8)
Exchange losses (13.9) (10.8)
Losses on disposals (11.5) (1.8)
Other financial expenses (including provisions) (23.2) (3.3)
Other financial expenses (76.0) (43.7)
The change in the present values of retirement benefit obligations, net of
the expected return on assets, amounts to €27 million for 2005.
The losses on disposals and other financial expenses include in particular
8. INCOME TAX
8.1 ANALYSIS OF NET TAX EXPENSE
The tax expense for the period comprises:
– the tax recognised by French subsidiaries for €406 million (€339.7 million
in 2004), which includes €129.6 million current tax for Cofiroute
(against €153 million in 2004) and €257.5 million current tax for the
VINCI holding company, the lead company of a tax group comprising
587 French subsidiaries (against €197.8 million in 2004);
216
VINCI 2005 ANNUAL REPORT
the impact of the disposal of the subsidiaries of TMS by VINCI Energies.
This totals - €28 million after taking into account the provisions related
to warranties in respect of liabilities and to future disposals.
(in € millions) 2005 2004
Current tax (495.2) (436.0)
Deferred tax 32.7 55.6
temporary differences 15.7 38.8
tax losses and tax credits 17.1 16.8
(462.5) (380.4)
8.2 EFFECTIVE TAX RATE
The difference between the tax calculated using the standard tax rate in
force in France and the amount of tax effectively recognised in the period
can be analysed as follows:
– the tax recognised by foreign subsidiaries, amounting to €56.5 million.
Tax relating to items recognised directly in equity amounts to
- €25.3 million.
The parent company and its subsidiaries are regularly subject to inspection
by the tax authorities.
(in € millions) 2005 2004
Profit before tax and profit or loss of associates 1,378.3 1,204,7
Theoretical tax rate in France 34.93% 35.43%
Theoretical tax charge expected (481.4) (426.8)
Goodwill impairment expense (4.6) (16.1)
Impact of taxes due on income subject to a lower tax rate 4.9 (14.9)
Impact of tax loss carryforwards and other unrecognised or previously capped temporary differences 1.3 (67.6)
Difference in tax rates on foreign profit or loss 29.3 11.9
Permanent differences and miscellaneous (11.9) 133.2
Tax charge recognised (462.5) (380.4)
Effective tax rate 33.56% 31.57%
Effective tax rate excluding impact of share-based payments and goodwill impairment 31.60% 29.60%