Vetoquinol Universal Registration Document 2019

Vetoquinol  Universal Registration Document 2019  Financial report   79 CONSOLIDATED FINANCIAL STATEMENTS Notes to the consolidated financial statements 6 Reconciliation of theoretical tax, at the French statutory tax rate, to effective tax is as follows: €000 2019 2018 Net income for the year 28,247 36,227 CIR restatement (3,848) (4,475) CVAE restatement as per IAS 12 (1,200) (1,165) (Earnings)/loss of associates (30) 183 Income tax expense 12,464 12,171 Pre-tax earnings adjusted for tax credits 35,633 42,941 Theoretical tax at 32.02% (34.43% in 2018) 11,410 14,785 Non-deductible expenses and non-taxable income 746 (320) Impact of change in tax rate 1,586 425 Change in tax losses b/fwd and c/fwd 438 31 Tax rate differences for foreign companies (2,895) (3,989) Other taxes (under IAS 12) (*) 1,245 1,237 Impact of reduced rate (28) (26) Taxes with no tax base (tax credits, withholding taxes, etc.) (106) 139 Miscellaneous 69 (112) Effective tax 12,464 12,171 Effective tax rate 34.98% 28.34% (*) Impact caused by restatement of taxes akin to CVAE. Analysis of movements in deferred tax assets during the year: €000 2019 2018 Opening balance 9,846 9,656 Recognized in the income statement (1,385) 349 Recognized in other comprehensive income 217 (177) Changes in consolidation scope - - Reclassifications 318 299 Exchange differences 9 (281) Closing balance 9,005 9,846 Analysis of movements in deferred tax liabilities during the year: €000 2019 2018 Opening balance 7,370 6,954 Recognized in the income statement (554) 51 Recognized in other comprehensive income - - Changes in consolidation scope - - Changes in deferred tax liabilities via goodwill 472 - Reclassifications 318 299 Exchange differences 171 66 Closing balance 7,775 7,370 Unrecognized deferred tax assets arising from 2019 tax losses reported by subsidiaries amounted to €1.5 million (2018: €1.1 million). Pursuant to IAS 12 and subject to certain conditions, a business may offset its deferred tax assets and liabilities. This was done in the table above on the “Reclassifica- tions” line.