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SYT » Topics » Analysis of tax rate

This excerpt taken from the SYT 20-F filed Mar 1, 2006.

Analysis of tax rate

The main elements contributing to the difference between Syngenta’s overall expected tax rate and the effective tax rate for US GAAP for the years ended December 31, 2005, 2004 and 2003 are given below.

 
  2005   2004   2003
  %   %   %
 
Statutory tax rate   25   25   25
Overseas income taxed at different rates   (6 )   2   (19 )
Restructuring costs   (2 )   (13 )   (4 )
Effect of disallowed expenditures and income not subject to tax   (1 )   5   16
Effect of utilization of previously unrecognized deferred tax assets   (6 )   (23 )   (18 )
Effect of non–recognition of tax losses in current year   4   2   18
Effect of change in tax rates on opening deferred tax balances   –   –   –
Increase in valuation allowance against previously recognized deferred tax assets   9   6   3
Changes in prior year estimates and other items   (6 )   17   15
 
Effective tax rate   17   21   36
 

Subsequently recognized tax benefits relating to the valuation of deferred tax assets as of December 31, 2005, 2004 and 2003 would be allocated as follows:

 
(US$ million)   2005   2004   2003  
 
Income tax benefit that would be reported in the consolidated statement of net      
     income   153   150   270  
Goodwill   42   42   42  
 
Total   195   192   312  
 
This excerpt taken from the SYT 20-F filed Mar 16, 2005.

Analysis of tax rate

The main elements contributing to the difference between Syngenta’s overall expected tax rate and the effective tax rate for US GAAP for the years ended December 31, 2004, 2003 and 2002 are given below. The analyses for 2003 and 2002 have been adjusted to reflect the retroactive application of accounting policy changes, as described in Note 2 and this note.

  2003   2002  
2004   (adjusted)   (adjusted)
%   %   %
Statutory tax rate 25   25   25
Overseas income taxed at different rates 2   (19 )   (3 )
Effect of disallowed expenditures (8 )   12   (13 )
Effect of utilization of previously unrecognized deferred tax assets (23 )   (18 )   13
Effect of non-recognition of tax losses in current year 2   18   (9 )
Effect of change in tax rates on opening deferred tax balances –   –   (1 )
Increase in valuation allowance against previously recognized deferred tax assets 6   3   (21 )
Changes in prior year estimates and other items 17   15   (8 )
Effective tax rate 21   36   (17 )
 
Subsequently recognized tax benefits relating to the valuation of deferred tax assets as of December 31, 2004, 2003 and 2002 would be allocated as follows:
 
(US$ million) 2004   2003   2002
Income tax benefit that would be reported in the consolidated statement    
     of net income 150   270   155
Goodwill 42   42   48
Total 192   312   203

EXCERPTS ON THIS PAGE:

20-F
Mar 1, 2006
20-F
Mar 16, 2005

RELATED TOPICS for SYT:

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