Taxes
The tax expenses for 2007 presented
in the income statement amounted to € 42.8 million (2006: income of €
27.9 million) or 30.5% of profit before tax.
This relatively low rate is mainly the result of some significant changes in provisions relating to deferred tax (where the deferred tax liability was reduced as a result of a significant reduction in German corporate taxes from 2008 onwards), partially offset by some provisions for potential tax exposures in various jurisdictions.
Overall, these non-recurring effects reduced the company’s tax expense by approximately € 9 million. Cash taxes paid principally continue to benefit from tax loss carry forwards in a number of jurisdictions, but were affected in the fourth quarter by payments of € 8.9 million relating to tax audits of prior years.
The net cash outflow in 2007 was € 27.3 million.