Other taxes include non reimbursable withholding 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
2009
2008
Income/(loss) before taxes
60 523
-6 092
Expected tax calculated at domestic tax rates in the respective countries
-16 721
2 225
Effect of income not subject to income tax or taxed at reduced rates
3 355
3 266
Effect of utilization of previously unrecognized tax asset on tax losses carried forward and temporary differences
8 942
16 651
Effect of temporary differences and tax losses not recognized and deferred tax assets written-off
-2 926
-18 889
Effect of disallowed expenditures
-1 363
-340
Effect of prior year income taxes
-17
-673
Effect of non-refundable withholding tax
-844
-699
Other
142
-2 444
Tax expense
-9 432
-903
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 127 (2008: kCHF -2 376) and is disclosed under other in the above table.
The weighted average applicable tax rate was 27.63 % (2008: 36.52 %). The decrease in tax rate is mainly attributable to change in the profitability mix of the subsidiaries (different countries and tax regimes).
