The table below summarises the tax position as at 31 December:
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2007 |
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2006 |
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2005 |
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Current |
Deferred |
Total |
Current |
Deferred |
Total |
Current |
Deferred |
Total |
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Assets |
471 |
2,500 |
2,971 |
470 |
991 |
1,461 |
430 |
1,500 |
1,930 |
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Liabilities |
1,133 |
1,357 |
2,490 |
1,369 |
1,364 |
2,733 |
1,201 |
2,428 |
3,629 |
Tax assets are included under Accrued interest and other assets (see note 24).
The components of deferred tax assets and deferred tax liabilities as at 31 December are shown below.
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Balance sheet |
Income statement | ||||
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2007 |
2006 |
2005 |
2007 |
2006 |
2005 |
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Deferred tax assets: |
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Assets held for trading (trading securities /derivative financial instruments /other assets held for trading) |
38 |
148 |
225 |
(109) |
(79) |
95 |
|
Liabilities held for trading (short security sales / derivative financial instruments /other liabilities held for trading) |
213 |
138 |
432 |
(37) |
(295) |
(507) |
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Investments (Held to maturity/Available for sale) |
414 |
15 |
8 |
(17) |
(2) |
(9) |
|
11 |
5 |
24 |
2 |
(19) |
(2) | |
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Property, plant and equipment |
36 |
41 |
34 |
(3) |
13 |
(31) |
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Intangible assets (excluding goodwill) |
5 |
3 |
2 |
3 |
1 |
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Insurance policy and claim reserves |
430 |
657 |
563 |
(86) |
231 |
(12) |
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Due from customers |
194 |
152 |
107 |
42 |
51 |
1 |
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Impairments on loans |
167 |
227 |
163 |
(54) |
66 |
61 |
|
Debt certificates and subordinated liabilities |
46 |
21 |
51 |
25 |
(29) |
37 |
|
Provisions for pensions and post-retirement benefits |
352 |
390 |
431 |
(33) |
(42) |
44 |
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Other provisions |
258 |
174 |
612 |
88 |
(401) |
27 |
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Accrued expenses and deferred income |
44 |
27 |
6 |
15 |
21 |
(6) |
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Unused tax losses |
1,473 |
333 |
172 |
1,150 |
161 |
21 |
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Other |
156 |
234 |
516 |
(107) |
(299) |
162 |
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Gross deferred tax assets |
3,837 |
2,565 |
3,346 |
879 |
(622) |
(119) |
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Unrecognised deferred tax assets |
(161) |
(131) |
(107) |
(51) |
(21) |
(29) |
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Net deferred tax assets |
3,676 |
2,434 |
3,239 |
828 |
(643) |
(148) |
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Deferred tax liabilities related to: |
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Assets held for trading (trading securities /derivative financial instruments /other assets held for trading) |
527 |
133 |
181 |
(284) |
8 |
217 |
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Liabilities held for trading (short security sales / derivative financial instruments /other liabilities held for trading) |
1 |
1 |
5 |
(1) |
5 |
48 |
|
101 |
645 |
1,827 |
44 |
68 |
67 | |
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Investment property |
114 |
74 |
267 |
(2) |
196 |
(5) |
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Property, plant and equipment |
539 |
543 |
376 |
10 |
(167) |
12 |
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Intangible assets (excluding goodwill) |
189 |
145 |
22 |
(44) |
(115) |
3 |
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Due from customers |
84 |
113 |
167 |
45 |
54 |
(41) |
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Impairments on loans |
9 |
8 |
21 |
(1) |
13 |
(2) |
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Debt certificates and subordinated liabilities |
36 |
26 |
49 |
(11) |
23 |
(8) |
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Other provisions |
132 |
125 |
116 |
(5) |
(7) |
(54) |
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Deferred policy acquisition costs |
164 |
174 |
214 |
11 |
39 |
28 |
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Deferred expense and accrued income |
84 |
67 |
13 |
(16) |
(53) |
(25) |
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Tax exempt realised reserves |
50 |
52 |
58 |
2 |
5 |
(10) |
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Other |
503 |
701 |
851 |
195 |
202 |
(41) |
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Total deferred tax liabilities |
2,533 |
2,807 |
4,167 |
(57) |
271 |
189 |
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Deferred tax income (expense) |
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|
771 |
(372) |
41 |
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Net deferred tax |
1,143 |
(373) |
(928) |
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Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes relate to the same taxation authority. The amounts offset in the balance sheet are:
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2007 |
2006 |
2005 |
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Deferred tax asset |
2,500 |
991 |
1,500 |
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Deferred tax liability |
1,357 |
1,364 |
2,428 |
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Net deferred tax |
1,143 |
(373) |
(928) |
At 31 December 2007, the aggregate deferred and current tax relating to items that are charged to equity amounts to EUR (14) million, negative, and EUR 4 million respectively (2006: EUR 617 million respectively EUR 1 million; 2005: EUR 1,543 million respectively EUR 4 million negative).
Deferred tax assets are recognised to the extent that it is probable that there will be sufficient future taxable profit against which the deferred tax asset can be utilised. No deferred tax assets have been recognised on unused tax losses and unused tax credits of EUR 698 million (2006: EUR 416 million; 2005: EUR 351 million) that can be carried forward unlimited in time.
Deferred tax assets depending on future taxable profits in excess of profits arising from the reversal of existing taxable temporary differences amount to EUR 848 million (2006: EUR 30 million; 2005: EUR 13 million) and have been recognised based on the expectation that sufficient taxable income will be generated in future years to utilise these deferred tax assets.
