RTL Group to recognise an additional deferred tax asset
Luxembourg, 22 December 2006 – RTL Group announces that it has reached agreement with the relevant tax authorities on the determination of the amount of an intangible asset which was subject to a non-recurring transaction between Group entities in 2005.
This transaction was fully disclosed in the 2005 Annual Report of RTL Group, note 9.4, which stated that during 2005 the Company completed a non-recurring transaction between Group entities. In relation with this transaction an amount of EUR 59 million of deferred tax assets has been recognised while an amountof EUR 352 million has not been recognised in 2005.
Following the agreement an additional deferred tax asset, amounting to EUR 234 million, will be recognised as at 31 December 2006 in the full year consolidated accounts of RTL Group and will be amortised over a remaining period of 13 years. The value of the deferred tax asset has been computed based upon
the current applicable tax rate.
Any future reduction in the tax rate will cause an immediate fall in the value of all of the relevant deferred tax assets and liabilities held on the balance sheet of RTL Group.
For further information please contact:
Phone: +352/2486 5200