13. Deferred taxes

The tax effects of temporary differences, tax losses carried forward, and tax credits that result in a recognition of deferred tax assets and liabilities include the following items:

Pursuant to IAS 12.34, the tax benefit from the acquisition of BÖHLER-UDDEHOLM Aktiengesellschaft is reported as unused tax credit and will be released as a deferred tax expense over a period of 14 years with an amount of EUR 18.1 million per year (remaining term five years). This is offset by actual tax savings.

With its decision of January 30, 2014, the Higher Administrative Court (Verwaltungsgerichtshof) directed a request for a preliminary ruling to the ECJ (Higher Administrative Court 30/1/2014, EU 2014/0001-1 (2013/15/0186)). Among other issues, this request contained the question of whether, when acquiring a domestic equity interest, goodwill amortization constitutes state aid within the framework of group taxation in Austria, as defined by Art 107 (1) of the Treaty on the Functioning of the European Union (TFEU). Following ruling C-166/14 of the ECJ in October 6, 2015, the question of whether this constitutes state aid has no connection with the main proceedings, so the question was inadmissible. In a decision dated February 10, 2016, the Higher Administrative Court subsequently ruled that this does not constitute prohibited state aid. Thus, the risk of rescission that was previously declared no longer exists.

Deferred tax assets on losses carried forward in the amount of EUR 49.2 million (March 31, 2015: EUR 51.8 million) were recognized. As of March 31, 2016, there is a total of unused tax losses of approximately EUR 251.9 million (corporate income tax) (March 31, 2015: total of approximately EUR 217.4 million), for which no deferred tax asset has been recognized. Up to 2026, approximately EUR 48.0 million of tax loss carryforwards (corporate income tax) will expire.

No deferred tax liabilities are shown for the taxable temporary differences due on investments in subsidiaries, joint ventures, and associates of EUR 2,529.5 million (March 31, 2015: EUR 2,269.4 million) because the parent company is able to control the timing of the reversal of the temporary differences and no reversal of the temporary differences is expected in the foreseeable future.

The change in the balance between deferred tax assets and liabilities amounts to EUR –55.2 million (March 31, 2015: EUR 25.5 million). This essentially corresponds to the deferred tax expense of EUR 4.0 million (March 31, 2015: EUR 17.9 million) less the deferred tax assets recognized in the other comprehensive income in the amount of EUR –4.4 million (March 31, 2015: EUR 42.4 million) and less the deferred taxes of initial consolidation in the amount of EUR –43.6 million.

Additional disclosures pursuant to IAS 12.81 (ab):