Other taxes include non reimbursable with holding taxes.
The tax on the Group's profit before tax differs from the theoretical amount that would arise using the weighted average tax rate applicable to profits of the consolidated companies as follows:
In CHF'000
2008
2007
Income/(loss) before taxes
-6 092
82 386
Expected tax calculated at domestic tax rates in the respective countries
2 225
-11 343
Effect of income not subject to income tax or taxed at reduced rates
3 266
4 249
Effect of utilization of previously unrecognized tax asset on tax losses carried forward and temporary differences
16 651
298
Effect of temporary differences and tax losses not recognized and deferred tax assets written-off
-18 889
-6 085
Effect of disallowed expenditures
-340
-404
Effect of prior year income taxes
-673
75
Effect of non-refundable withholding tax
-699
-2 233
Other
-2 444
505
Tax expense
-903
-14 938
Income before tax includes the full income before tax of non-fully owned subsidiaries whose taxes are paid by its shareholders since they are tax-transparent companies. As a result 100 % of the income before tax of these companies is included in income before tax while the Group only recognizes its ownership percentage tax portion. The theoretical tax impact if the Group had recognized 100 % of the taxes on these subsidiaries amounts to kCHF -2 376 (2007: kCHF 0) and is disclosed under other in the above table.
The weighted average applicable tax rate was 36.52 % (2007: 13.77 %). The increase in tax rate is mainly attributable to change in the profitability mix of the subsidiaries (different countries and tax regimes).
