technicolor - 2018 Registration document

FINANCIAL STATEMENTS

NOTE 6 INCOME TAX

Related party transactions

5.2 A party is related to the Group if:

the party is an associate or a joint venture in which the Group is a • venture; the party or one of its Directors is a Member of the Board of • Directors or of the Executive Committee of the Group or a close Member of the family of any individual referred to above.

directly or indirectly the party (i) controls, is controlled by or is • under common control with the Group, (ii) has an interest in the Group that gives it significant influence over the Group;

Related party transactions with associates & joint ventures are detailed in note 2.4. Remuneration of key management is detailed in note 9.4. In 2018 there are no related parties transactions.

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

2018

2017*

(in million euros)

Current income tax France

2

3

Foreign

(1)

(15) (12)

Total Income Tax Deferred income tax France

1

6

-

(113)

Foreign

(55) (55) (54)

13

Total Income Tax

(100) (112)

INCOME TAX ON CONTINUING OPERATIONS

2017 amounts are re-presented to reflect the impacts of Discontinued Operations (see note 12). *

In 2018 and 2017, 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 2018