[14] Income taxes

The tax income of €34,722 thousand (2009: €38,888 thousand) consists of €14,997 thousand (2009: €5,426 thousand) in current tax expenses and €49,719 thousand (2009: €44,314 thousand) in deferred tax income. The current tax expenses include income of €11,868 thousand (2009: €2,568 thousand) relating to prior financial years.

On the reporting date, there were income tax receivables due from taxation authorities in the amount of €4,550 thousand (2009: €16,761 thousand) and income tax liabilities of €6,661 thousand (2009: €16,767 thousand).

Deferred taxes are recognised for temporary differences between the tax base and IFRS carrying amounts. Deferred taxes are determined on the basis of the tax rates that will apply or are expected to apply at the realisation date in accordance with the current legal situation in each country concerned. The current corporate income tax rate in Germany is 15.0 per cent (2009: 15.0 per cent). Taking into account the average trade tax rate of 13.9 per cent (2009: 14.0 per cent) and the solidarity surcharge (5.5 per cent of corporate income tax), the combined tax rate for companies in Germany was 29.8 per cent (2009: 29.9 per cent). The income tax rates for foreign companies used in the calculation of deferred taxes are between 10.0 per cent and 37.8 per cent (2009: 12.5 per cent and 38.7 per cent).

No deferred taxes have been recognised for differences between the IFRS carrying amounts and the tax base for investments (outside basis differences) because the KION Group is in a position to manage the timing of the reversal of temporary differences and there are no plans to dispose of investments in the foreseeable future.

Deferred tax assets include the following items in the statement of financial position:

Deferred tax liabilities include the following items in the statement of financial position:

The deferred tax liabilities essentially relate to the purchase price allocation in the acquisition of the KION Group, particularly for intangible assets and property, plant and equipment.

Deferred tax assets in the amount of €161,119 thousand (2009: €145,014 thousand) were not recognised as it is unlikely that the corresponding benefit can be utilised. Unrecognised deferred tax assets relate to tax loss carryforwards of €74,263 thousand (2009: €82,296 thousand), interest carryforwards of €81,844 thousand (2009: €59,704 thousand) and other temporary differences of €5,012 thousand (2009: €3,014 thousand).

Deferred taxes are recognised on tax loss carryforwards and interest carryforwards to the extent that sufficient future taxable income is expected to be generated against which the losses can be utilised. Of the total tax loss carrryforwards of €74,263 thousand (2009: €82,296 thousand) for which no tax assets have been recognised, €0 thousand (2009: €3,362 thousand) relates to tax loss carryforwards which expire within one year and €74.263 thousand (2009: €78,934 thousand) to tax loss carryforwards which can be carried forward indefinitely.

As at 31 December 2010, the KION Group's tax loss carryforwards in Germany amounted to €400,286 thousand (2009: €315,263 thousand) for corporate income tax and the solidarity surcharge, and €288,910 thousand (2009: €220,288 thousand) for trade tax. There were also foreign tax loss carryforwards totalling €183,353 thousand (2009: €240,041 thousand).

As at 31 December 2010, the interest carryforward in Germany that can be carried forward indefinitely amounted to €342,252 thousand (31 December 2009: €220,242 thousand).

The table below shows the reconciliation of expected income tax expense to effective income tax expense. The Group reconciliation is an aggregation of the individual company-specific reconciliations prepared in accordance with relevant local tax rates, taking into account consolidation effects recognised in income. The expected tax rate applied in the reconciliation is 29.8 per cent (2009: 29.9 per cent).