EURAZEO_REGISTRATION_DOCUMENT_2017

CONSOLIDATED FINANCIAL STATEMENTS Notes to the Consolidated Financial Statements

INCOME TAX EXPENSE NOTE 11

11.1

Proof of tax

2017

2016

(In thousands of euros) Consolidated net income Share of income of associates

480,050 (30,300)

643,008 (90,417)

Net income from discontinued operations, net of tax

1,040 78,758

5,596 47,722

Current income tax expense

Deferred income tax

(78,022)

(15,560)

Income tax expense Net income before tax Theoretical tax rate Theoretical tax charge

736

32,162

451,526 34.43% 155,460

590,349 34.43% 203,257

Actual tax charge

736

32,162 12,854

Impact of taxation not based on net income *

(11,157)

Difference

143,568

183,949

Breakdown of the difference Difference in tax rates

4,784

(8,892) 312,001 (110,021) (1,486) (20,163)

Non-taxable items Non-deductible items

223,365 (65,209)

Items taxable at reduced rates

56,031

Tax losses carried forward not capitalized

(87,240)

Offset of tax losses carried forward not capitalized Impact of commercial real estate tax regime

(366) 3,349 8,854

796

6,223 5,491

Other

4

Primarily CVAE and the 3% tax on dividend distributions (France). *

Non-taxable items primarily concern accounting journals in respect of changes in scope during the year (mainly Elis, Europcar and Moncler).

Analysis of the capitalization of tax losses 11.2 Deferred tax assets are recognized in respect of tax losses carried forward wherever it is probable that they can be offset against future taxable income within a reasonable timeframe or where there is a deferred tax liability with a similar reversal date. Tax losses break down as follows:

Before

2017

Total

(In thousands of euros) Tax losses (base) Tax losses capitalized

239,905

340,530

580,435

96,020

51,109

147,129

Tax loss utilization cut-off date

unlimited 23,960

unlimited

Deferred tax assets arising from tax losses

12,989 25.41% 289,421

36,949

i.e. an average tax rate of:

24.95% 143,885

25.11%

Tax losses for which no deferred tax asset has been recognized (base)

433,306

241

Eurazeo

2017 Registration document