TECHNICOLOR_REGISTRATION_DOCUMENT_2017

- 6 FINANCIAL STATEMENTS

Notes to the consolidated financial statements

INCOME TAX NOTE 6. Income tax recognized in profit and loss 6.1. Income tax expense 6.1.1.

Income tax expense comprises current and deferred tax. Deferred tax is recognized in profit or loss, except to the extent that it relates to items previously recognized outside profit or loss (either in OCI or directly in equity). Moreover, IAS 12 does not specify whether tax benefits arising from tax losses should be allocated to the source of the loss or the source of the realization of the benefit. the Group has accounted for any tax benefits arising from tax losses from discontinued activities in continuing operations since these tax losses will be used by future benefits from continuing operations.

2017

2016*

(in million euros)

Current income tax France

3

-

Foreign

(15) (12)

(15) (15)

Total current income tax Deferred income tax France

(113)

(59)

Foreign

13

44

Total deferred income tax

(100) (112)

(15)

INCOME TAX ON CONTINUING OPERATIONS

(30)

2016 amounts are re-presented to reflect the impacts of Discontinued Operations (see note 12) *

In 2017 and 2016, the current income tax charge was mainly attributable to current taxes due in France, India, Canada, UK, Australia and Poland.

In France, the current income tax reflects income taxes payable due to the limitation of the usage of tax losses carried forward, withholding taxes on income earned by our Licensing activities and the local tax “CVAE”. Please see section 6.2.1 for detail on the variation of deferred taxes.

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TECHNICOLOR

REGISTRATION DOCUMENT 2017