83 5. Income taxes continued Income tax benefit (expense) is comprised of the following components:  2012 US$000 2011 US$000 Current taxes:  Current income tax charge  (13,391) (6,876) Adjustments in respect of current income tax of previous year  (280) (79) Deferred taxes:  Relating to origination and reversal of temporary differences  (12,073) (11,722) Relating to a reversal of a previous write-down of a deferred tax asset 2,132 14,607 Income tax expense  (23,612) (4,070) 2012 US$000 2011 US$000 Current taxes:  Germany  (12,819) (6,682) Foreign  (852) (273) Deferred taxes:  Germany  (14,860) 4,282 Foreign  4,919 (1,397) Income tax expense  (23,612) (4,070) Although Dialog is a UK company, its principal operations are located in Germany. Accordingly, the following information is based on German corporate  tax law.  The tax rate for its German subsidiary is 15%; considering the impact of the solidarity surcharge of 5.5%, the federal corporate tax rate amounts to  15.8%. Combining the federal corporate tax rate with the trade tax rate of 12.6%, the combined statutory tax rate of the German subsidiary is 28.4%.