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Rothschild & Co | Annual Report 2017
Current tax
In thousands of euro
01/04/17
31/12/17
(9 months)
01/04/16
31/03/17
(12 months)
Tax charge for the period
(42,584)
(59,157)
Adjustments related to prior periods
7,261
2,698
Irrecoverable dividend-related tax
(4,698)
(6,457)
Other
(411)
(927)
TOTAL
(40,432)
(63,843)
On 6 October 2017, the supreme court in France judged the 3% tax paid by French companies on dividend distributions to be contrary to the French
constitution. The decision of the supreme court gave rise to a return of the tax paid, together with the payment of interest. The Group has claimed a
repayment of dividend tax it has paid, together with interest, of c. €8 million and this is disclosed as an adjustment related to prior periods. The timing
of the reimbursement is expected to be in 2018.
The French Parliament has passed legislation for a new additional corporate income tax to provide funds to meet the cost of these claims. The Group is out
of the scope of this new tax.
Deferred tax
In thousands of euro
01/04/17
31/12/17
(9 months)
01/04/16
31/03/17
(12 months)
Temporary differences
313
(8,457)
Changes in tax rates
994
1,435
Adjustments related to prior years
206
474
TOTAL
1,513
(6,548)
RECONCILIATION OF THE TAX CHARGE BETWEEN THE FRENCH STANDARD TAX RATE AND THE EFFECTIVE RATE
In thousands of euro
01/04/17
31/12/17
(9 months)
Profit before tax
353,838
Expected tax charge at standard French corporate income tax rate
34.4% 121,827
Main reconciling items
Impact of foreign profits and losses taxed at different rates
(13.7%)
(48,451)
Tax on partnership profits recognised outside the Group
(10.4%)
(36,775)
Tax impacts relating to prior years
(2.1%)
(7,467)
Tax on income from associate recorded net of tax
(1.2%)
(4,413)
Tax impact on deferred tax relating to change of the corporate income tax rate
(0.3%)
(996)
(Gains)/losses where no deferred tax is recognised
+0.1%
373
Permanent differences
+0.9%
3,147
Irrecoverable and other dividend-related taxes
+1.3%
4,699
Tax on dividends received through partnerships
+1.6%
5,834
Other tax impacts
+0.3%
1,141
Actual tax charge
10.9% 38,919
EFFECTIVE TAX RATE
10.9%
Notes to the consolidated financial statements