25. Deferred tax assets/deferred tax liabilities

Deferred tax assets on tax loss carry-forwards and temporary differences amount to €1,434 million before netting (30/9/2015: €1,466 million), a decline of €32 million compared with 30 September 2015. The carrying amounts of deferred tax liabilities increased by €37 million to €921 million compared with the previous year (30/9/2015: €884 million).

Deferred taxes relate to the following balance sheet items:

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30/9/2015

30/9/2016

 

 

 

 

 

€ million

Asset

Liability

Asset

Liability

Goodwill

110

161

82

174

Other intangible assets

73

83

68

80

Property, plant and equipment and investment properties

138

468

134

492

Financial investments and investments accounted for using the equity method

4

3

4

13

Inventories

62

10

68

11

Other financial and non-financial assets

57

56

49

57

Assets held for sale

0

2

0

0

Provisions for post-employment benefits plans and similar obligations

281

53

323

52

Other provisions

101

11

87

3

Financial liabilities

351

1

370

11

Other financial and non-financial liabilities

139

32

136

25

Liabilities related to assets held for sale

0

0

0

0

Outside basis differences

0

4

0

4

Write-downs of temporary differences

−89

0

−82

0

Loss carry-forwards

240

0

194

0

 

1,466

884

1,434

921

Offset

−742

742

−771

−771

Carrying amount of deferred taxes

724

142

663

150

Of the deferred tax assets shown, €377 million (30/9/2015: €390 million) are attributable to the German incorporated companies of METRO AG. Based on business planning, realisation of this tax asset is to be considered sufficiently probable.

In accordance with IAS 12 (Income Taxes), deferred tax liabilities relating to differences between the carrying amount of a subsidiary’s pro rata equity in the balance sheet and the carrying amount of the investment for this subsidiary in the parent company’s tax statement must be recognised (so-called outside basis differences) if the tax benefit is likely to be realised in the future. The differences can primarily be attributed to retained earnings of subsidiaries in Germany and abroad. No deferred taxes were recognised for these retained earnings as they will be reinvested over an indefinite period of time or are not subject to relevant taxation. Any dividends paid by subsidiaries would be subject to a dividend tax of 5 per cent. In addition, foreign dividends may trigger a withholding tax. As of 30 September 2016, €4 million (30/9/2015: €4 million) in deferred tax liabilities from outside basis differences were recognised for planned dividend payments. Due to the hierarchical structure of METRO GROUP, the determination of the taxable temporary differences would require disproportionately high efforts.

No deferred tax assets were capitalised for the following tax loss carry-forwards and interest carry-forwards or temporary differences because realisation of the assets in the short-to-medium term is not expected:

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€ million

30/9/2015

30/9/2016

Corporation tax losses

8,027

8,326

Trade tax losses

7,865

7,302

Interest carry-forwards

15

71

Temporary differences

364

377

The losses primarily concern Germany. They can be carried forward without limitation.

Tax effects on components of other comprehensive income

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2014/15

2015/16

 

 

 

 

 

 

 

€ million

Before taxes

Taxes

After taxes

Before taxes

Taxes

After taxes

Currency translation differences from translating the financial statements of foreign operations

−183

−3

−186

49

−1

48

thereof currency translation differences from net investments in foreign operations

(−9)

(−3)

(−12)

(−12)

(−1)

(−13)

Effective portion of gains/losses of cash flow hedges

−12

2

−10

2

0

2

Gains/losses on remeasuring financial instruments in the category “available for sale”

0

0

0

0

0

0

Deferred taxes from the remeasurement of defined benefit pension plans

90

−31

59

−207

59

−148

Other changes

0

0

0

 

0

0

Remaining income tax on other comprehensive income

0

1

1

−2

5

3

 

−105

−31

−136

−158

63

−95

 

 

 

 

 

 

 

As a result of non-taxable events as well as the non-recognition and impairment of deferred taxes, the recognised tax does not correspond to the estimated tax for each item.