Current tax expense
Movement in deferred taxes
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The recognised tax expense of €28 million is made up of tax charges of €29 million for 2016 and an adjustment of €1 million (gain) relating to prior years. This adjustment relates to a tax charge which, with the agreement of the Dutch Tax & Customs Administration, is no longer being recovered in instalments by setting against the tax liability in future years.
The corporate income tax charge on the taxable profit of the Alliander N.V. tax group for 2016 amounts to €25 million. This is the balance of the calculated corporate income tax on the profit for 2016 (€29 million) and the calculated corporate income tax on movements in balance sheet items recognised directly in equity (€4 million tax credit).
The movement in the deferred tax position of €14 million negative is made up of a movement in the deferred tax assets of €15 million negative and a movement in the deferred tax liabilities of €1 million positive.
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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Losses not accounted for
Other permanent differences
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Effective corporate income tax rate
The higher effective tax rate in 2016 is due to unrecognized losses of Alliander AG/Allego GmbH and other cost items that are disallowed for tax purposes.