13. Taxes €/000 36,794

The item "Income taxes" is detailed below:

In thousands of euro
Current taxes22,45030,923(8,473)
Taxes relative to previous years833465368
Deferred tax liabilities(11,083)(5,601)(5,482)
Non-recurrent costs24,59424,594
Total taxes36,79425,78711,007

Taxes for 2013 amounted to €/000 36,794. The value includes €/000 24,594 for the non-recurrent cost relative to the tax assessment of the Parent Company in the first few months of 2014. This amount, discussed in note 48, consists of €/ML 5.1 relating to findings for regional production tax purposes, which will entail a financial outlay divided in 5 quarterly instalments (4 instalments of €/ML 1 in 2014 and the last one in March 2015). The remaining €/ML 19.5 that will not entail any financial outlay, relate to the findings for income tax purposes and originate from the offsetting of:

  1. tax losses for previous years on which the deferred tax had been recognised (impact on the income statement of €/ML 15.5);
  2. tax losses related to the  Consolidated Tax Convention, that the Parent Company participates in and that gave rise to the recognition of an expense from consolidation for a remainder of €/ML 4.

The item current taxes includes expenses Consolidated Tax Convention of €/000 1,989.
In 2012, taxes were equal to €/000 25,787 and accounted for 38.0% of profit before tax.    

Reconciliation in relation to the theoretical rate is shown below:

In thousands of Euros 
Profit before tax30,266
Theoretical rate27.50%
Theoretical income taxes 8,323
Effect arising from changes in Profit before tax and deferred tax liabilities (8,600)
Tax effect arising from taxes on income produced abroad 4,146
Expenses (income) from the Consolidated Tax Mechanism 1,818
Indian tax on the distribution of dividends 4,087
Regional production tax (IRAP) and other local taxes 2,906
Taxes relative to previous years 24,594
Other differences(480)
Income taxes recognised in the financial statements 36,794

* The 2012 figures have been reallocated based on the presentation treatment adopted from the 2013 financial statements.

Theoretical tax rates were determined applying the corporate tax rate in effect in Italy (27.5%) to profit before tax. The effect arising from the rate of regional production tax and other taxes paid abroad was determined separately, as these taxes are not calculated on the basis of profit before tax.