Econocom - 2020 annual report

06 consolidated financial statements

notes to the consolidated financial statements

The income tax expense amounted to €13.6 million, plus €4.9 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 €18.5 million.

Given the profit (loss) before tax of continuing operations of €67.9 million, the effective tax rate reported reached 27.3% (same as adjusted at end 2019); restated for amortisation of intangible assets and the CVAE/IRAP, the restated effective tax rate was 20.4% in 2020 (20.9% adjusted in 2019).

Reconciliation between theoretical tax expense and effective tax expense

2020 2019 restated*

in € millions

67.9

82.6

Profit (loss) before tax on continuing operations

Theoretical tax expense at current Belgian rate (25.00% in 2020 and 29.58% in 2019)

(17.0)

(24.4)

In accordance with IFRS 5 (see 2.2.5), 2019 income and expenses of operations considered discontinued in 2020 * are reclassified to “Profit (loss) from discontinued operations” in the 2019 income statement.

Reconciliation

2020 2019 restated*

in € millions

(1.8)

(3.3)

Unrecognised tax losses arising in the year

1.0

1.9

Previously unrecognised tax losses used in the year

(2.3)

(0.2)

De-recognition of previously recognised tax losses

0.3

4.1

Adjustment to current and deferred tax

(4.9)

(5.6)

Effect of taxes other than on income (1)

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

0.7

(2.3)

0.7 4.8

0.7 6.5 1.8

Tax credits and other

Other permanent differences

(1.5)

Total differences

Effective income tax expense (22.6) In accordance with IFRS 5 (see 2.2.5), 2019 income and expenses of operations considered discontinued in 2020 * are reclassified to “Profit (loss) from discontinued operations” in the 2019 income statement. Taxes other than on income relate to taxes assessed on value added that meet the requirements of IAS 12. (1) For 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. (18.5)

189

2020 annual report