The Effective Tax Burden of Listed Companies

The Effective Tax Burden of Listed Companies: The Case of the Athens Stock Exchange (ASE)

Evangelos Chytis, MSc ,PhD , TEI of Epirus, Preveza, Greece

Chytis Evangelos

CONTENTS 

IAS 12 DEFERRED TAX



L. 4172/2013 INCOME TAX CODE



FINDINGS FROM ATHENS STOCK EXCHANGE (ASE

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IAS 12 Income Taxes and ETR The amount of tax expense (or income) related to profit or loss is required to be presented in the statement(s) of profit or loss and other comprehensive income. [IAS 12.77]

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Current tax 

Current tax for the current and prior periods is recognised as a liability to the extent that it has not yet been settled, and as an asset to the extent that the amounts already paid exceed the amount due. [IAS 12.12]

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Deferred tax assets and deferred tax liabilities Deferred tax assets and deferred tax liabilities can be calculated using the following formulae:  Temporary difference = Carrying amount Tax base  Deferred tax asset or liability = Temporary difference x Tax rate 

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The following formula can be used in the calculation of deferred taxes arising from unused tax losses or unused tax credits: Unused tax loss  Deferred tax asset = or unused tax credits x Tax rate 

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The benefit of a tax loss The benefit of a tax loss which can be carried back to recover current tax of a prior period is recognised as an asset. [IAS 12.13]  Current tax assets and liabilities are measured at the amount expected to be paid to (recovered from) taxation authorities, using the rates/laws that have been enacted or substantively enacted by the balance sheet date. [IAS 12.46] 

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The following formula summarises the amount of tax to be recognised in an accounting period: =  Tax to recognise for the period 

Current tax for the period + Movement in deferred tax balances for the period

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IAS 12 DEFERRED TAX and ETR

T_Ex= Total Tax Expence , T_Cur=Current Tax , T_Def=Deferred Tax EBT= Earnings before Tax

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FINDINGS FROM ASE 

Sample:

All Listed Entities in ASE (1.011 observations)



Time Period :

2005-2012



International Trade Indices:

FTSE/ASE 20, FTSE/ASE Mid 40, FTSE/ASE 80



Accounting Standards:

Full and mandatory application of IAS/IFRS



Segregation:

Banking Sector Entities & Other Sectors’ (Industry) Entities

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Tax Rate Analysis (in € 000). Earnings Before Tax > 0 Fisscal FirmYear years

EBT

Total Tax Current Tax

Earnings Before Tax < 0

Deferred Deferred Extraordin FirmTax_Income Tax_Expence ary Taxes years

LBT

Total Tax

Current Deferred Deferred Tax Tax_Income Tax_Expence

Extraordi nary Taxes

2005

117

7.639.299.422

-26,8%

-26,0%

4,0%

-4,6%

-0,3%

12

-56.817.440

18,7%

13,9%

-14,4%

17,1%

2,1%

2006

110

9.971.301.281

-27,1%

-22,1%

0,8%

-3,8%

-2,0%

19

-652.999.102

-0,1%

29,0%

-30,7%

1,1%

0,6%

2007

116

13.156.611.570

-21,7%

-17,5%

0,7%

-3,8%

-1,1%

13

-164.055.357

11,1%

9,0%

-14,9%

9,6%

7,4%

2008

104

9.213.754.835

-20,4%

-20,1%

4,0%

-2,8%

-1,5%

25

-1.584.925.353

-5,6%

5,8%

-17,4%

5,3%

0,8%

2009

90

8.338.934.455

-30,3%

-19,0%

2,5%

-5,6%

-8,2%

39

-1.856.562.164

1,7%

6,6%

-7,9%

1,1%

1,9%

2010

73

5.552.042.123

-36,4%

-30,4%

7,1%

-1,8%

-11,3%

55

-5.459.141.488

1,4%

2,2%

-3,0%

0,2%

2,1%

2011

56

2.544.236.289

-29,8%

-26,3%

1,5%

-3,9%

-1,1%

66

-42.456.626.124 -10,9%

0,9%

-12,2%

0,0%

0,3%

2012

49

2.604.026.375

-24,1%

-23,4%

2,2%

-2,7%

-0,2%

67

-9.048.817.256 -12,6%

4,1%

-17,4%

0,2%

0,4%

Συνολ.

715

59.020.206.350

-26,1%

-21,8%

2,6%

-3,8%

-3,1%

296 -61.279.944.284

2,1%

-12,3%

0,3%

0,5%

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-9,4%

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Effective Tax Rate and FTSA /ASE Indices http://athexgroup.gr/web/guest/indices

(€ 000).

INDECES

Firmyears

EBT > 0

131 48.466.309.224 FTSE/ASE 20 FTSE/ASE 148 7.497.731.453 Mid 40 FTSE/ASE 232 1.199.385.492 SmallCap 80 FTSEA, 31 439.102.756 FTSEGT


Deferred Deferred Extraordinary FirmTax_Income Tax_Expence Taxes years

EBT < 0


Deferred Deferred Extraordin Tax_Income Tax_Expence ary Taxes

-25,7% -21,8%

2,6%

-3,3%

-3,2%

27 -49.722.807.612 -11,4%

1,8%

-13,6%

0,0%

0,3%

-27,8% -22,0%

1,9%

-5,1%

-2,6%

67 -4.170.922.462

-2,6%

5,9%

-10,6%

1,1%

1,0%

-33,2% -24,5%

3,8%

-8,8%

-3,7%

90 -1.883.173.823

3,0%

4,0%

-7,9%

4,7%

2,2%

-28,0% -13,9%

1,1%

-11,2%

-4,0%

16 -155.012.319

5,3%

5,2%

-12,9%

5,2%

7,8%

155 960.845.537

-32,4% -27,6%

4,0%

-4,7%

-4,1%

71 -4.545.048.943

-0,9%

1,6%

-3,9%

0,2%

1,2%

Temporarily 18 456.831.889 not incl.

-14,0% -14,3%

8,5%

-4,1%

-4,2%

25 -802.979.126

2,3%

1,4%

-2,4%

2,7%

0,6%

715 59.020.206.350 -26,1% -21,8%

2,6%

-3,8%

-3,1%

296 -61.279.944.284 -9,4%

2,1%

-12,3%

0,3%

0,5%

INDEX DOM

Total

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Effective Tax Rate per FTSA /ASE Indices (2005-2012)

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Effective Tax Rate per FTSA /ASE Indices (2005-2012)

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Effective Tax Rate per Industry /ASE (2005-2012) (€ 000). Industry (ASE)

Firmyears

EBT > 0

Total Tax

Current Tax

EBT < 0

Total Tax

Current Tax

Real Estate

9

250.952.000

-17,9%

-10,3%

1,7%

-5,0%

-4,3%

13

-1.010.940.000

-14,5%

3,0%

-17,8%

0,0%

0,3%

Insurance

7

34.436.000

-33,2%

-24,0%

5,7%

-13,4%

-1,5%

0

0

0,0%

0,0%

0,0%

0,0%

0,0%

Industrial Goods & Services

83

1.706.202.970

-24,4%

-21,9%

3,0%

-3,2%

-2,3%

31

-475.884.408

6,3%

19,3%

-17,0%

1,1%

2,8%

Retail

25

445.238.120

-27,8%

-22,1%

0,2%

-0,5%

-5,5%

12

-185.589.333

5,9%

1,9%

-1,6%

1,8%

3,9%

Construction & Materials

65

2.665.350.962

-27,3%

-22,9%

3,1%

-4,5%

-3,0%

31

-492.828.620

2,7%

6,9%

-8,7%

2,2%

2,3%

Media

12

41.588.718

-33,6%

-9,3%

1,2%

-19,6%

-5,9%

20

-355.782.984

3,7%

2,9%

-5,6%

3,6%

2,8%

Oil & Gas

18

2.845.422.662

-26,7%

-22,2%

2,5%

-5,3%

-1,7%

3

-3.215.031

13,5%

4,2%

-19,5%

0,4%

28,4%

Personal & Househol d Goods

56

1.925.376.047

-27,5%

-23,9%

0,5%

-0,7%

-3,4%

31

-458.612.722

-3,2%

21,2%

-29,3%

3,1%

1,9%

Basic Resources

32

1.600.096.196

-21,3%

-20,9%

5,7%

-3,0%

-3,1%

24

-510.447.975

-2,7%

6,3%

-12,5%

2,4%

1,1%

Travel & Leisure

26

6.709.241.465

-28,9%

-25,9%

0,6%

-0,8%

-2,8%

3

-62.450.250

-2,4%

-0,4%

-15,3%

0,0%

13,3%

Technol ogy

43

93.389.094

-46,7%

-30,2%

1,9%

-14,3%

-4,1%

32

-904.292.304

1,2%

5,5%

-7,1%

2,0%

0,8%

Telecommunications

7

4.696.900.000

-39,1%

-33,3%

2,4%

-2,7%

-5,5%

0

0

0,0%

0,0%

0,0%

0,0%

0,0%

Banks

54

20.433.733.000

-21,8%

-16,6%

3,2%

-3,8%

-4,6%

31

-49.466.501.000

-11,4%

1,7%

-13,5%

0,2%

0,2%

Food & Beverage

69

3.387.757.105

-24,9%

-21,4%

0,6%

-4,0%

-0,2%

22

-280.624.587

-2,4%

2,4%

-9,4%

2,2%

2,4%

Health Care

12

415.747.000

-30,8%

-15,8%

3,3%

-12,1%

-6,1%

15

-2.786.081.000

-0,7%

1,1%

-3,7%

0,2%

1,8%

Util ities

26

2.736.388.000

-29,5%

-22,7%

2,9%

-7,6%

-2,1%

2

-481.692.000

-5,6%

6,0%

-18,8%

1,2%

6,0%

Chemicals

31

121.486.073

-32,7%

-27,2%

3,5%

-4,3%

-4,7%

4

-4.289.472

12,6%

17,8%

-27,7%

5,6%

16,9%

Fi nancial Services

23

1.271.601.516

-23,3%

-15,4%

0,8%

-7,3%

-1,5%

10

-3.743.895.159

0,8%

0,9%

-1,4%

0,1%

1,2%

Total

598

51.380.906.928

-26,0%

-21,2%

2,4%

-3,6%

-3,6%

284

-61.223.126.844

-9,4%

2,1%

-12,3%

0,3%

0,5%

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Deferred Deferred Extraordi n FirmTax_Income Tax_Expence ary Taxes years

Deferred Deferred Extraordin Tax_Income Tax_Expence ary Taxes

Effective Tax Rate per Industry /ASE (2005-2012)

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