Econocom - 2019 Universal registration document

06 consolidated financial statements

notes to the consolidated financial statements

The income tax expense amounted to €16.7 million, plus €5.6 million from tax on value added in France (CVAE) and from the IRAP tax ( Imposta Regionale sulle Attività Produttive ) in Italy, for a total of €22.3 million. Given the profit before tax of continuing operations of €80.2 million, the effective tax rate reported reached 27.8% (29.2% adjusted at end 2018); restated for amortisation of intangible assets (ECS customer portfolio and Osiatis brand) and the CVAE/ value/IRAP, the restated effective tax rate was 21.2% in 2019 (22.2% adjusted in 2018).

Reconciliation between theoretical tax expense and effective tax expense

2019 2018 restated*

in € ڳ millions

80.2

71.2

Profit before tax on continuing operations

(23.7)

(21.1)

Theoretical tax expense at current Belgian rate (29.58%)

Following the application of IFRS ژ 5 (see 2.2.5.). *

Reconciliation

2019 2018 restated*

in € ڳ millions

(3.3)

(2.1)

Unrecognised tax losses arising in the ژ year

1.9

0.3

Previously unrecognised tax losses used in the ژ year

(0.2)

-

De-recognition of previously recognised tax deficits

4.0

1.0

Adjustment to current and deferred tax

(5.6)

(5.5)

Effect of taxes other than on income (1)

Effect of foreign income tax rates and changes in foreign income tax rates

(2.4)

(1.5)

0.7 6.3 1.4

3.6 4.5 0.3

Tax credits and other

Other permanent differences

Total differences

Effective income tax expense (20.8) Adjustments related to the change in presentation of the additional depreciation (see 1.2.2) and following the * application of IFRS 5 (see 2.2.5). Taxes other than on income relate to taxes assessed on value added that meet the requirements of IAS ژ 12. For (1) Econocom, this relates to the tax on value added in France (net of income tax) and to the IRAP tax (Imposta Regionale sulle Attività Produttive) in Italy. (22.3)

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2019 annual report