26 Deferred taxes
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Inhoudsopgave Voorwoord Bestuursverslag Corporate governance Consolidated Financial Statements Company Financial Statements Pillar 3
These expenses are included when a redundancy scheme is
drawn up and communicated to stakeholders.The expected
outflow of funds will occur in 2017 and 2018.
An addition of 514 in the provision for legal issues was made in
2016 after Rabobank adopted the SME interest rate derivatives
recovery framework. For additional information, please refer to
Paragraph 4.10, 'Legal and arbitration proceedings'.
The provision for tax and legal issues is based on the best
possible estimates available at year-end, taking into account
legal and tax advice. The timing of the cash outflow relating
to these provisions is uncertain because the outcome of the
disputes and the time involved are unpredictable.
The item 'Other' includes provisions for onerous contracts and
credit guarantees.
Deferred tax assets and liabilities are measured for all
temporary differences using the 'liability' method. The effective
tax rate in the Netherlands for measuring deferred tax is
25% (2015: 25%) There were no changes in deferred tax assets
and liabilities resulting from changes in the effective tax rate
in the Netherlands. No deferred tax asset has been recognised
for unused tax losses totalling 1,628 (2015:1,648).These carry
forward losses relate to various tax authorities and their term to
maturity is largely unlimited.
Deferred tax assets recognised in respect of carry forward losses
can only be utilised if taxable profits are realised in the future.
On 31 December 2016, Rabobank expects that sufficient taxable
profits would be generated within the applicable periods.
Maturities of Rabobank Group (excluding provisions for employee
benefits and loan impairment allowances)
in millions of euros
Up to one
year
7-5
years
Longer than
5 years
Total
On 31 December 2016
1,371
175
1,546
On 31 December 2015
861
131
1
993
Deferred tax assets
Deferred tax
liabilities
Deferred tax
charges
Tax on other
comprehensive
income
in millions of euros
For the year ended 31 December 2016
Pensions and other post-employment benefits
53
(2)
(2)
2
Loan impairment allowance
403
(15)
(147)
Financial liabilities designated at fair value
(229)
Provisions
39
(10)
(3)
Hedging of interest rate risk
(14)
114
Carry forward losses
1,104
(21)
499
Goodwill and other intangible assets
19
2
(5)
Revaluation reserves for available-for-sale financial assets
(129)
1
(20)
Revaluation reserves - Cash flow hedges
20
10
Revaluation reserve - Fair value changes due to own credit risk
on financial liabilities designated at fair value
101
122
Property and equipment, including leases
100
617
(98)
Other temporary differences
664
46
45
Total
2,360
618
174
114
Deferred tax assets
Deferred tax
liabilities
Deferred tax
charges
Tax on other
comprehensive
income
in millions of euros
For the year ended 31 December 2015
Pensions and other post-employment benefits
55
7
9
Loan impairment allowance
255
(17)
122
Financial liabilities designated at fair value
(250)
42
Provisions
41
(1)
(10)
Hedging of interest rate risk
100
83
Carry forward losses
1,559
(76)
(52)
Goodwill and other intangible assets
14
(13)
Revaluation reserves for available-for-sale financial assets
(107)
2
2
Revaluation reserves - Cash flow hedges
10
16
Property and equipment, including leases
77
706
64
Other temporary differences
636
(39)
(122)
Total
2,390
575
121
27
228 Rabobank Jaarverslag 2016