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2014 Registration Document
Consolidated Financial Statements Year ended December 31, 2014
5
Notes to the Consolidated statements
TAX PROOF
Theoretical income tax for 2014, calculated by multiplying consolidated income before tax by the standard French corporate income tax rate (including
the 10.7%
contribution exceptionnelle
surtax applicable until December 30, 2016), represented an expense of €764 million, compared with actual
net income tax expense of €709 million. These two amounts can be reconciled as follows:
(in € millions)
2014
2013
Income before taxes
2,010
1,690
Standard French corporate income tax rate
38.0%
38.0%
Theoretical income tax
(764)
(642)
Tax effect of untaxed income and income taxed at a different rate
(1)
111
236
Taxes with no tax base (provisions recorded solely for tax purposes, withholding taxes, etc.)
(2)
(19)
(232)
Impact of non-deductible impairment
losses
on goodwill
0
(5)
Tax effect of other permanent differences
24
4
Valuation allowances on deferred tax assets
(3)
(20)
(69)
Deferred tax assets not recognized during the year
(147)
(123)
Deferred tax assets recognized in prior years
(4)
55
233
Other
51
(32)
TOTAL INCOME TAX EXPENSE
(709)
(631)
Effective tax rate
35.3%
37.4%
(1) In 2013, this item corresponded, for €131 million, to a capital gain taxed at a reduced rate and, for the balance, to the taxation of income generated outside France
at rates that are below the French statutory rate.
(2) The reported amount of taxes with no tax base notably takes into account changes in provisions for tax risks. Since 2010, the CVAE local business tax in France,
which is assessed on the basis of the value-added generated by the business, is reported under income tax expense. This tax amounted to €64 million in 2014
(2013: €69 million).
(3) In 2013, valuation allowances recorded on deferred tax assets mainly concerned Italy.
(4) Deferred tax assets recognized in on prior years’ tax losses primarily concern Italy in 2014, Spain and Belgium in 2013.
Note 14
Net income from discontinued operations
(in € millions)
2014
2013
Net income from discontinued operations – Group share
67
314
Net income from discontinued operations attributable to non-controlling interests
0
(8)
TOTAL
67
306
In 2014, net income from discontinued operations mainly reflects the
settlement during the period of an old litigation for €88 million, and the
result of the closing of Indian operations for -€24 million.
In 2013, net income from discontinued operations mainly reflected
the €396 million profit on the sale of the Group’s interest in Carrefour
Indonesia, partly offset by the €65 million loss recognized on the loss
of control of the Turkish subsidiary.