26 Deferred taxes
Contents Introduction Management report Appendices Corporate governance Consolidated Financial Statements Company Financial Statements
costs directly attributable to the reorganisation programme.
These expenses are included when a redundancy scheme is
drawn up and communicated to stakeholders.The expected
outflow of funds will occur in 2018 and 2019.
An addition of 51 (2016: 514) in the provision for legal issues
was made for the SME interest rate derivatives recovery
framework. For additional information, please refer to section
4.10,'Legal and arbitration proceedings'.
The provision for legal issues is based on the best possible
estimates available at year-end, taking into account legal 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.
In the additions to the Other provisions, an amount of 310 is
included in anticipation on an expected settlement connected
to previously disclosed investigations at Rabobank National
Association (RNA). For additional information, please refer to
section 4.10,'Legal and arbitration proceedings'. Besides this
provision, the Other provisions include provisions for onerous
contracts and credit related contingent liabilities.
Maturities of provisions
in millions of euros
On 31 December 2017
On 31 December 2016
Up to
one year
1,421
1,371
1 - 5 Longer than
years 5 years
116
139
Total
1,537
1,510
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% (2016:
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 1,544 (2016:1,628).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 2017, Rabobank expects that sufficient taxable
profits would be generated within the applicable periods.
Deferred tax assets Deferred tax liabilities Deferred tax charges Tax on other comprehensive income
in millions of euros
Forthe year ended 31 December 2017
Pensions and other post-employment benefits
Loan impairment allowance
Provisions
Hedging of interest rate risk
Carry forward losses
Tax credits
Goodwill and other intangible assets
Revaluation reserves for available-for-sale financial assets
Revaluation reserves - Cash flow hedges
Revaluation reserve - Fair value changes due to own
credit risk on financial liabilities designated at fair value
Property and equipment, including leases
Other temporary differences
Total
in millions of euros
Forthe year ended 31 December 2016
Pensions and other post-employment benefits
Loan impairment allowance
Financial liabilities designated at fair value
Provisions
Hedging of interest rate risk
Carry forward losses
Tax credits
Goodwill and other intangible assets
Revaluation reserves for available-for-sale financial assets
Revaluation reserves - Cash flow hedges
Revaluation reserve - Fair value changes due to own
credit risk on financial liabilities designated at fair value
Property and equipment, including leases
Other temporary differences
Total
50
229
25
37
582
154
13
(86)
11
208
95
415
1,733
(1)
(23)
17
(32)
(84)
(1)
1
487
32
396
7
72
35
(51)
(71)
131
144
50
(9)
107
Deferred tax assets Deferred tax liabilities Deferred tax charges Tax on other comprehensive income
53
403
39
(14)
1,104
177
19
(129)
20
101
100
487
2,360
(2)
(15)
(10)
(21)
2
1
617
46
618
(2)
(147)
(229)
(3)
114
499
(5)
(20)
10
(98)
45
174
Rabobank Annual Report 2017 - Consolidated financial statements
224
