Current tax expense
Movement in deferred taxes
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The recognised tax expense of €59 million is made up of tax charges of €73 million for 2015 and an adjustment of €14 million (gain) relating to prior years. This adjustment mainly relates to an amount released from a provision, taking place for tax purposes in 2015 instead of 2014 with the agreement of the Dutch Tax & Customs Administration.
The corporate income tax payable on the 2015 taxable profits of the Alliander N.V. tax group (including the corporate income tax due on the profit from discontinued operations) was €78 million. This is the balance of the calculated corporate income tax on the profit for 2015 (€82 million) and the calculated corporate income tax on movements in balance sheet items recognised directly in equity (€4 million tax credit).
The table below provides a reconciliation between the corporate income tax rate in the Netherlands and the effective tax rate:
Reconciliation of effective corporate income tax rate
Enacted corporate income tax rate in the Netherlands
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Gain on sale of interest
Other permanent differences
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Effective corporate income tax rate
The higher effective tax burden in 2015 is the net effect of non-recognition of the loss at Alliander AG (increased tax), tax breaks for capital projects (reduced tax) and cost items that are disallowed for tax purposes (increased tax). The lower effective tax burden in 2014 is due to the fact that tax was not payable on the book profit made on the disposal of the interest in KEMA.
The effective tax burden included in the profit from discontinued operations is 25%.