1.5 Taxes
Income taxes
The weighted applicable tax rate is calculated using the expected income tax rates of the individual Group companies in each jurisdiction. The increase in the weighted applicable tax rate is mainly due to tax rate changes as well as countries with higher-than-average tax rates contributing more to the total group profit.
CHF million |
| Financial year ended 30.06.2021 |
| Financial year ended 30.06.2020 |
Profit before taxes |
| 249.6 |
| 211.2 |
Weighted applicable tax rate |
| 25.2% |
| 23.4% |
Tax calculated at applicable tax rate |
| 62.9 |
| 49.4 |
Current income taxes |
| 50.5 |
| 39.0 |
Deferred income taxes |
| 5.8 |
| 8.1 |
Income taxes |
| 56.3 |
| 47.1 |
Difference between applicable and effective income taxes |
| –6.6 |
| –2.3 |
Impact of losses and tax loss carryforwards |
| –5.0 |
| –4.2 |
Tax-exempt income |
| –6.1 |
| –2.7 |
Non-deductible expenses |
| 7.0 |
| 3.3 |
Non-recoverable withholding tax expenses |
| 2.2 |
| 3.5 |
Tax charges (credits) relating to prior periods, net |
| 0.0 |
| 1.8 |
Other |
| –4.7 |
| –4.0 |
Income taxes charged to equity |
| –0.6 |
| 0.5 |
Deferred taxes
CHF million |
| Financial year ended 30.06.2021 |
| Financial year ended 30.06.2020 |
Balance sheet presentation of deferred income taxes |
|
|
|
|
Total deferred income taxes, net |
| 126.6 |
| 135.3 |
Deferred income tax assets |
| 152.8 |
| 159.7 |
Deferred income tax liabilities |
| 26.2 |
| 24.4 |
Expiration of tax loss carryforwards not recognized as deferred tax assets |
|
|
|
|
Balance of tax loss carryforwards at end of financial year |
| 142.7 |
| 139.9 |
Expiry in 1 year |
| 0.0 |
| 0.0 |
Expiry in 2 to 5 years |
| 17.0 |
| 8.3 |
Expiry after 5 years |
| 11.9 |
| 3.0 |
No expiry |
| 113.8 |
| 128.6 |
Accounting principles
Current income taxes are based on taxable income for the current year and charged to income when incurred. Deferred income taxes are determined using the liability method, with the applicable and substantially enacted income tax rates applied on a comprehensive basis to eligible temporary differences. Deferred income tax assets arising from temporary differences are only recognized to the extent that it is probable that future taxable profit will be available, against which the temporary differences can be utilized. Deferred income taxes resulting from tax loss carryforwards applicable to future taxable income are only recognized to the extent of the available deferred tax liabilities.
Use of accounting estimates
The recoverable amount of deferred income tax assets is based on past performance and forecasts of the corresponding taxable entity over a period of several years. Deviations between actual and projected results can lead to impairment losses.