84. Notes to the consolidated financial statements continued 7. Income tax expense Recognised in the income statement In millions of EUR 2005 2004 Current tax expense Current year 326 333 Under/(over) provided in prior years (14) 10 312 343 Deferred tax expense Origination and reversal of timing differences (12) (20) Reduction in tax rate (6) (21) Benefit of tax losses recognised 6 4 (12) (37) Total income tax expense in income statement 300 306 Profit before tax 1,169 1,039 Income from associates (34) (21) Dividend income (13) (11) Book profit on sale of Whitbread (17) Impairment other investments 6 190 2005 2004 Income tax using corporate tax rate 31.5 354 34.5 407 Effect of tax rates in foreign jurisdictions Effect of permanent non-deductible expenses (2.5) 2.6 (29) 30 (6.1) 2.3 (72) 27 Effect of tax incentives (4.0) (45) (4.1) (48) Effect of tax losses utilised 0.5 6 0.4 4 Reduction of tax rates (Over)/under provided in prior years (0.6) (1.2) (6) (14) (1.8) 0.9 (21) 10 Other reconciling items 0.3 4 (o.i) (1) 26.6 300 26.0 306 Deferred tax credit recognised directly in equity In millions of EUR 2005 2004 Relating to policy changes (12) Relating to fair value adjustments 31 19 Heineken N.V. - Annual Report 2005

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2005 | | pagina 90