Notes to the consolidated accounts

6 Taxation

Current tax
Current year	(1 118)	(1 171)	(1 172)
Over/(under) provided in prior years(a)	226	206	107
	(892)	(965)	(1 065)
Deferred tax
Origination and reversal of temporary differences	(261)	(171)	(123)
Changes in tax rates	21	(15)	2
Utilisation of unrecognised losses brought forward	4	5	5
	(236)	(181)	(116)
	(1 128)	(1 146)	(1 181)
Tax charge in income statement	€ million 2007	€ million 2006	€ million 2005

(a) Provisions have been released following the favourable settlement of prior year tax audits for amounts provided for tax in prior years in a number of countries, including the Netherlands, the UK and the US, none of which is individually material.

Europe is considered to be Unilever's domestic tax base. The reconciliation between the computed weighted average rate of income tax expense, which is generally applicable to Unilever's European companies, and the actual rate of taxation charged is as follows:

Computed rate of tax(b)	27	30	31
Differences due to:
Other rates applicable to non-European countries	2	1	–
Incentive tax credits	(6)	(7)	(5)
Withholding tax on dividends	2	1	2
Adjustments to previous years	(5)	(4)	(2)
Expenses not deductible for tax purposes	2	2	2
Utilisation of previously unrecognised tax losses	–	–	(1)
Other	–	1	(1)
Effective tax rate	22	24	26
Reconciliation of effective tax rate	% 2007	% 2006	% 2005

(b) The computed tax rate used is the average of the standard rate of tax applicable in the European countries in which Unilever operates, weighted by the amount of profit before taxation generated in each of those countries.

The following tables analyse profit before taxation and actual taxation charges between those arising in Europe and elsewhere.

Profit before taxation	€ million 2007	€ million 2006	€ million 2005
Europe
Parent and group companies	2 332	2 266	2 379
Share of net profit/(loss) of joint ventures	26	17	11
Share of net profit/(loss) of associates	50	36	(20)
	2 408	2 319	2 370
Outside Europe
Group companies	2 700	2 451	2 115
Share of net profit/(loss) of joint ventures	76	61	36
Share of net profit/(loss) of associates	–	–	(5)
	2 776	2 512	2 146
	5 184	4 831	4 516
Taxation
Europe
Parent and group companies:
Current taxes payable	(208)	(359)	(414)
Deferred taxation	(202)	(174)	(162)
Accelerated depreciation	27	2	22
Pensions	(196)	(196)	(123)
Provisions	35	24	(25)
Goodwill and intangible assets	(59)	4	(48)
Other	(9)	(8)	12
	(410)	(533)	(576)
Outside Europe
Group companies:
Current taxes payable	(684)	(606)	(651)
Deferred taxation	(34)	(7)	46
Accelerated depreciation	2	25	(40)
Pensions	(2)	(142)	28
Provisions	63	16	(78)
Goodwill and intangible assets	(62)	98	123
Other	(35)	(4)	13
	(718)	(613)	(605)
	(1 128)	(1 146)	(1 181)