Notes to the consolidated balance sheet (continued)
Liabilities (continued)
21 Other liabilities
Other liabilities by type
| 2008 | 2007 | |
|---|---|---|
| Deferred tax liabilities | 3,602 | 3,432 |
| Income tax payable | 940 | 877 |
| Pension benefits | 609 | 425 |
| Post-employment benefits | 219 | 232 |
| Other staff-related liabilities | 342 | 355 |
| Other taxation and social security contributions | 1,104 | 1,123 |
| Deposits from reinsurers | 909 | 427 |
| Accrued interest | 17,552 | 13,606 |
| Costs payable | 3,764 | 2,744 |
| Amounts payable to brokers | 89 | 114 |
| Amounts payable to policyholders | 2,231 | 2,283 |
| Reorganisation provision | 583 | 619 |
| Other provisions | 969 | 781 |
| Share-based payment plan liabilities | 11 | 14 |
| Property under development for third parties | 175 | 284 |
| Amounts to be settled | 3,753 | 4,156 |
| Dividend payable | 425 | |
| Taiwan – liabilities held for sale | 15,020 | |
| Other | 8,235 | 12,387 |
| 60,532 | 43,859 |
Other staff-related liabilities include vacation leave provisions, jubilee provisions and disability/illness provisions.
Other mainly relates to year-end accruals in the normal course of business, none of which are individually material.
Deferred taxes are calculated on all temporary differences under the liability method using tax rates applicable to the jurisdictions in which the Group is liable to taxation.
Changes in deferred tax
| Net liability | Change through equity | Change through net result | Changes in the composition of the group | Exchange rate differences | Other | Net liability | 2007 | 2008 |
|---|---|---|---|---|---|---|---|
| Investments | 258 | –5,409 | –463 | 114 | –268 | 350 | –5,418 |
| Financial assets and liabilities at fair value through profit and loss | 156 | –2 | –303 | 17 | –10 | 170 | 28 |
| Deferred acquisition costs and VOBA | 3,047 | 778 | 36 | –632 | 266 | –14 | 3,481 |
| Fiscal reserve | 15 | –3 | –1 | –11 | |||
| Depreciation | –11 | 1 | 3 | 22 | –4 | 4 | 15 |
| Insurance provisions | –871 | 450 | –104 | 571 | –56 | –484 | –494 |
| Cash flow hedges | 43 | 154 | –10 | 12 | 78 | 277 | |
| Other provisions | –1,146 | 19 | –255 | 41 | –70 | –11 | –1,422 |
| Receivables | 100 | –41 | –12 | –1 | –107 | –61 | |
| Loans and advances to customers | 96 | 494 | –1 | –4 | –25 | 560 | |
| Unused tax losses carried forward | –932 | –633 | 97 | –20 | –165 | –1,653 | |
| Other | –46 | –52 | 24 | 41 | –77 | 365 | 255 |
| 709 | –4,061 | –1,255 | 257 | –232 | 150 | –4,432 | |
| Comprising: | |||||||
| – deferred tax liabilities | 3,432 | 3,602 | |||||
| – deferred tax assets | –2,723 | –8,034 | |||||
| 709 | –4,432 |
Changes in deferred tax
| Net liability | Change through net result | Changes in the composition of the group | Exchange rate differences | Other | Net liability | 2006 | 2007 |
|---|---|---|---|---|---|---|---|
| Investments | 1,375 | –1,243 | 213 | –17 | 56 | –126 | 258 |
| Financial assets and liabilities at fair value through profit and loss | 119 | –40 | 82 | –11 | –2 | 8 | 156 |
| Deferred acquisition costs and VOBA | 3,201 | 3 | 151 | –312 | 4 | 3,047 | |
| Fiscal reserve | 3 | 8 | 4 | 15 | |||
| Depreciation | 28 | 3 | –26 | –5 | 1 | –12 | –11 |
| Insurance provisions | –1,490 | 116 | 339 | 93 | 71 | –871 | |
| Other provisions | –1,081 | 238 | –174 | –28 | 109 | –210 | –1,146 |
| Receivables | 196 | –128 | 1 | –2 | 33 | 100 | |
| Loans and advances to customers | 102 | 5 | –7 | –1 | –3 | 96 | |
| Unused tax losses carried forward | –909 | –15 | –26 | 1 | 76 | –59 | –932 |
| Other | 626 | –767 | 27 | 117 | 3 | –9 | –3 |
| 2,170 | –1,700 | 459 | 58 | 21 | –299 | 709 | |
| Comprising: | |||||||
| – deferred tax liabilities | 4,042 | 3,432 | |||||
| – deferred tax assets | –1,872 | –2,723 | |||||
| 2,170 | 709 |
Other in Net liability 2006 and Change through equity in 2007 mainly relates to the cash flow hedge reserve in equity.
Deferred tax in connection with unused tax losses carried forward
| 2008 | 2007 | |
|---|---|---|
| Total unused tax losses carried forward | 6,392 | 3,814 |
| Unused tax losses carried forward not recognised as a deferred tax asset | –638 | –688 |
| Unused tax losses carried forward recognised as a deferred tax asset | 5,754 | 3,126 |
| Average tax rate | 28.7% | 29.8% |
| Deferred tax asset | 1,653 | 932 |
The following tax loss carry forwards and tax credits will expire as follows as at 31 December:
Total unused tax losses carried forward analysed by expiry terms
| No deferred tax asset recognised | Deferred tax asset recognised | |||
|---|---|---|---|---|
| 2008 | 2007 | 2008 | 2007 | |
| Within 1 year | 2 | 64 | 56 | 41 |
| More than 1 year but less than 5 years | 68 | 176 | 425 | 249 |
| More than 5 years but less than 10 years | 219 | 230 | 2,802 | 610 |
| More than 10 years but less than 20 years | 298 | 71 | 1,540 | 1,010 |
| Unlimited | 51 | 147 | 931 | 1,216 |
| 638 | 688 | 5,754 | 3,126 | |
Deferred income tax assets are recognised for tax loss carry forwards and unused tax credits only to the extent that realisation of the related tax benefit is probable. Changes in circumstances in future periods may adversely impact the assessment of recoverability. The uncertainty of the recoverability of the tax losses and tax credits is taken into account in establishing the deferred tax assets.
Changes in reorganisation provision
| 2008 | 2007 | |
|---|---|---|
| Opening balance | 619 | 335 |
| Changes in the composition of the group | –22 | |
| Additions | 162 | 507 |
| Interest | 15 | 9 |
| Releases | –18 | –62 |
| Charges | –169 | –175 |
| Exchange rate differences | –6 | –3 |
| Other changes | 2 | 8 |
| Closing balance | 583 | 619 |
The provision for reorganisations as at 31 December 2008 includes EUR 360 million for the restructuring of the retail business of Postbank and ING Bank.
The provision for reorganisations as at 31 December 2007 includes EUR 252 million for the restructuring of the retail business of Postbank and ING Bank and EUR 100 million for the global wholesale restructuring. The remaining term of the provision for reorganisations is generally not more than five years.
Changes in other provisions
| Litigation | Other | Total | ||||
|---|---|---|---|---|---|---|
| 2008 | 2007 | 2008 | 2007 | 2008 | 2007 | |
| Opening balance | 229 | 189 | 552 | 531 | 781 | 720 |
| Changes in the composition of the group | –1 | 13 | 8 | 47 | 7 | 60 |
| Additions | 202 | 34 | 313 | 325 | 515 | 359 |
| Releases | –6 | –149 | –6 | –149 | ||
| Charges | –28 | –24 | –279 | –195 | –307 | –219 |
| Exchange rate differences | –6 | 1 | –15 | –8 | –21 | –7 |
| Other changes | –25 | 16 | 25 | 1 | 17 | |
| Closing balance | 371 | 229 | 598 | 552 | 969 | 781 |
Included in Other provisions in 2008 is a provision for a loss of EUR 292 million relating to the agreed disposal of ING Life Taiwan as disclosed in Note 29 ‘Companies acquired and companies disposed’.
Included in Other provisions in 2007 is a provision for a loss of EUR 129 million relating to the agreed disposal of NRG as disclosed in Note 29 ‘Companies acquired and companies disposed’.
In general, Other provisions are of a short-term nature.
The amounts included in other provisions are based on best estimates with regard to amounts and timing of cash flows required to settle the obligation.
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