10. Income taxes
€ ('000) 2012 2011
Current income tax 427 429
Taxes for previous years 300 945
Deferred taxes -103 1,248
Total 624 2,622
Income tax reconcilliation 2012 2011
Profit before taxes 3,332 13,709
Tax calculated at the domestic corporation tax rate of 24.5% (2011: 26%) 817 3,564
Effect of different tax rates outside Finland -85 -142
Tax exempt income -244 -662
Non-deductible expenses 26 32
Effect of consolidation -190 534
Taxes for previous years 300 945
Adjustments in respect of prior years 0 -1,649
Income taxes in the Group Income Statement 624 2,622
After completing a tax audit 2010-2011 in Finland, the Finnish tax authorities asserted that some of the operations of the Group’s parent company, CapMan Plc, include financial services exempt from VAT and that the parent company should not deduct VAT on certain costs incurred as a result. CapMan Plc disagrees with this assertion and has appealed the decision and submitted a request for rectification. The claim from the tax authorities is approximately MEUR 1.0. CapMan has not booked a contingency to cover this in its Financial Statements for 2011 or 2012.