Boskalis jaarverslagen 2011

11. Taxation

    2011   2010
         
Current tax expense        
Current year   -77,686   -82,470
Over / under(-) provided in prior years   9,706   12,197
Reclassification of deferred taxes regarding prior financial years   3,196   -13,718
    -64,784   -83,991
         
Deferred tax expense        
Origination and reversal of temporary differences   10,532   -5,124
Effect of changes in tax rates on deferred taxes   -380   -38
Reclassification of deferred taxes regarding prior financial years   -3,196   13,718
Movement of recognized tax losses carried forward   3,093   -1,690
    10,049   6,866
         
Taxation in the consolidated income statement   -54,735   -77,125

The operational activities of the Group are subject to various tax regimes with tax rates varying from 0% to 42% (2010: 0% to 42%). These different tax rates, together with fiscal facilities in various countries and the treatment of tax losses, results not subject to taxation and non-deductible costs, lead to an effective tax rate in the reporting period of 17.3% (2010: 19.8%). The effective tax rate is calculated as the tax charge divided by the profit before tax, as shown in the consolidated income statement. The reconciliation between the Dutch nominal tax rate and the effective tax rate is as follows:

    2011   2010
         
Nominal tax rate in the Netherlands   25.0%   25.5%
         
Application of local nominal tax rates   -9.3%   -4.7%
Non-deductible expenses   1.0%   3.0%
Effect of previously non-balancing and unrecognized tax losses   4.6%   0.7%
Effect of previously non-recognized tax losses   -0.3%   -0.3%
Special taxation regimes   -0.5%   -0.2%
Adjustment in respect of prior years   -3.1%   -3.1%
Effect of share in result of associated companies   -0.1%   -1.1%
         
Effective tax rate   17.3%   19.8%

Added to My report add to My report Source: Annual report 2011, page 84