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Annual Statements

Home Annual Statements Financial Statements 2013 Notes to the consolidated financial statements Notes to the consolidated balance sheet Deferred tax

18. Deferred tax

Schiphol Group has been subject to corporate income tax since 1 January 2002. On 8 September 2006, Schiphol Group and the tax authorities signed a tax ruling that specified the opening balance sheet for tax purposes and certain other arrangements for determining Schiphol Group’s taxable profit. These give rise to the following measurement differences:

  • Assets used for operating activities and assets under construction are carried at cost for both reporting and tax purposes but the tax ruling resulted in differences between the cost for reporting and tax purposes of assets held at 1 January 2002. The balance sheet for tax purposes equates cost with the market value at 1 January 2002, whereas the balance sheet for reporting purposes equates cost with the historical cost, which may be lower.
  • Property investments, derivative financial instruments and borrowings in foreign currencies are measured at fair value for reporting purposes and at cost for tax purposes.
  • Property investments are depreciated for tax purposes (with a residual value of 25%) but not for reporting purposes.
  • The Working on Profit Act came into force with effect from the financial year 2007. This Act restricts the depreciation for tax purposes of both commercial and operational buildings to a base value. The base value is 50% of the WOZ value (i.e., the value under the Valuation of Immovable Property Act) for operational buildings and 100% of the WOZ value for commercial buildings.
  • Differences in the measurement of employee benefits because of differences in the actuarial assumptions applied.

Deferred tax assets and liabilities are recognised in respect of all these differences and in respect of the deferred tax liability resulting from the expansion of Schiphol Group’s interest in JFK IAT LLC in 2010.

The deferred tax assets and liabilities arise from the following balance sheet items:

(in thousands of euros)

2013

2012

Deferred tax assets (fiscal unity)

Assets used for operating activities

143,498

171,856

Assets under construction or development

66,052

83,707

Derivative financial instruments and borrowings

10,572

36,944

Employee benefits

3,944

3,056

Investment property

- 23,927

- 29,142

200,139

266,421

Deferred tax liabilities (outside fiscal unity)

Investments in associates

- 14,134

- 13,777

Investment property

- 307

- 277

- 14,441

- 14,054

Total deferred tax (net asset)

185,698

252,367

Non-current (settlement is not expected)

83,274

83,574

Non-current (expected to be recovered or settled after longer than 1 year)

105,678

168,567

Current (expected to be recovered or settled within 1 year)

- 3,254

226

185,698

252,367

Under IAS 12, Income Taxes, a deferred tax asset has to be recognised if it is probable that sufficient taxable profit will be available against which the deductible temporary difference can be utilised. However, it is not expected that the deferred tax assets relating to certain operating assets (83.3 million euros) will actually be realised because the difference in the values for reporting and tax purposes will be realised only in the event of a sale (resulting in a lower profit for tax purposes and a lower corporate income tax liability), impairment (resulting in higher costs for tax purposes and a lower corporate income tax liability) or termination of the aviation activities (resulting in higher costs for tax purposes because compensation will only be obtained up to the carrying amount for reporting purposes). Schiphol Group is not authorised to sell the land for operating activities, forecasts of future cash flows do not suggest that impairment losses will be necessary and it is unlikely that the activities will be terminated.

Deferred tax assets and liabilities are netted if they relate to the same fiscal unity and the company at the head of this fiscal unity has a legally enforceable right to do so.

No deferred tax asset has been recognised for unused tax losses of 3.4 million euros.

The movements in the deferred tax assets and liabilities during the year were as follows:

(in thousands of euros)

Assets used for operating activities

Assets under construction or development

Investment property

Derivative financial instruments

Employee benefits

Associates

Total

Carrying amount as at 31 December 2011

185,930

78,878

- 26,187

13,236

3,294

- 11,799

243,352

Movements in 2012

Deferred tax on depreciation for tax purposes on investment property

- 14,074

-

- 2,265

-

-

-

- 16,339

Deferred tax recognised in the income statement

-

4,829

- 1,302

2,587

- 664

- 1,978

3,472

Deferred tax recognised in equity

-

-

-

21,121

-

-

21,121

Other movements

-

-

335

-

426

-

761

Total movements in the year

- 14,074

4,829

- 3,232

23,708

- 238

- 1,978

9,015

Carrying amount as at 31 December 2012

171,856

83,707

- 29,419

36,944

3,056

- 13,777

252,367

Movements in 2013

Deferred tax on depreciation for tax purposes on investment property

- 20,457

-

- 18,465

-

-

-

- 38,922

Deferred tax recognised in the income statement

-

-

- 1,907

-

1,383

- 357

- 880

Deferred tax recognised in equity

-

-

-

- 26,395

-

-

- 26,395

Reclassification

- 7,901

- 17,655

25,556

-

-

-

-

Other movements

-

-

-

23

- 495

-

- 472

Total movements in the year

- 28,358

- 17,655

5,184

- 26,372

888

- 357

- 66,669

Carrying amount as at 31 December 2013

143,498

66,052

- 24,235

10,572

3,944

- 14,134

185,698