FY 2012 Annual Report - Orascom Development

F-41 Orascom Development 2012 Annual Report F-42
13 Income taxes relating to continuing operations
13.1 Income tax recognised in profit or loss
CHF 2012 2011
CURRENT TAX
Current tax expense for the current year 6,110,045 4,640,658
Adjustments recognized in the current year in relation to the current tax of prior
years
- -
6,110,045 4,640,658
DEFERRED TAX
Deferred tax (income)/expense recognized in the current year 3,963,048 (4,854,441)
Deferred tax reclassified from equity to profit or loss - -
Write-down of deferred tax assets - -
Adjustments to deferred tax attributable to changes in tax rates and laws - 249,402
TOTAL INCOME TAX EXPENSE RECOGNIZED IN THE CURRENT YEAR
RELATING TO CONTINUING OPERATIONS
3,963,048 (4,605,039)
10,073,093 35,619
The following table provides reconciliation between income tax expense recognized for the year and the tax calculated by
applying the applicable tax rates on accounting profit:
CHF 2012 2011
(Loss) before tax from continuing operations (92,362,400) (76,258,620)
Income tax expense calculated at 16.86% (2011: 15.87%) (15,572,300) (12,102,243)
Previously unrecognized deferred tax assets - -
Unrecognized deferred tax assets during the year 17,436,820 7,195,656
Effect of income that is exempt from taxation 3,507,664 2,979,235
Effect of deferred tax balances due to change in income tax rate (see below) - (249,402)
Effect of expenses or (income) that are not (deductible) or added in determining
taxable profit
4,700,909 2,212,373
INCOME TAX EXPENSE RECOGNIZED IN PROFIT OR LOSS 10,073,093 35,619
The average effective tax rate of 16.86% (2011: 15.87%) is the effective tax rate from countries in which the company generates
taxable profit. The increase is mainly due to higher tax rates in Egypt. The new Presidential Decree in Egypt that changes some of
the Egyptian Tax Rules which has been issued but was deactivated on 7 December 2012 could affect the Group once it is activated.
13.2 Income tax recognized in other comprehensive income
CHF 2012 2011
DEFERRED TAX
Fair value measurement of hedging instruments entered into in a cash flow
hedge
(140,519) (175,251)
TOTAL INCOME TAX RECOGNISED IN OTHER COMPREHENSIVE INCOME (140,519) (175,251)
13.3 Current tax assets and liabilities
CHF 2012 2011
Current tax expense 6,110,045 4,640,658
Balance due in relation to the current tax of prior years - 1,867,976
Advance payment in relation to current tax of current year (559,455) -
Foreign currency difference (362,628) (375,153)
CURRENT TAX LIABILITIES 5,187,962 6,133,481
13.4 Deferred tax balances
Deferred tax assets and liabilities arise from the following:
2012
Recognized
Acquisition/
Opening Charged to Exchange in other
Closing
disposal of
balance income difference comprehensive
income
balance
Subsidiary
CHF
ASSETS
Temporary differences
Property, plant & equipment 10,626,114 974,423 (833,184) - - 10,767,353
Cash flow hedges 252,986 - - (140,519) - 112,467
Tax losses 14,615,389 1,559,082 (930,587) - - 15,243,884
Provisions 5,174,793 26,044 (361,466) - - 4,839,371
Pension plan 12,543 23,425 - - - 35,968
30,681,825 2,582,974 (2,125,237) (140,519) - 30,999,043
LIABILITIES
Temporary differences
Property, plant & equipment 27,531,272 5,498,221 (1,800,355) - (1,970) 31,227,168
Investment property 8,827,675 1,047,801 (779,314) - - 9,096,162
Pension plan 37,221 - - - - 37,221
36,396,168 6,546,022 (2,579,669) - (1,970) 40,360,551
NET DEFERRED TAX LIABILITY 5,714,343 3,963,048 (454,432) 140,519 (1,970) 9,361,508
2011
CHF
Opening
balance
Charged to
income
Exchange
difference
Recognized
in other
comprehensive
income
Acquisition/
disposal of
Subsidiary
Closing
balance
ASSETS
Temporary differences
Property, plant & equipment 11,308,002 (314,798) (367,090) - - 10,626,114
Cash flow hedges 428,237 - - (175,251) - 252,986
Tax losses 1,990,492 12,283,166 341,731 - - 14,615,389
Provisions 3,587,482 1,654,115 (66,804) - - 5,174,793
Pension Plan 5,232 7,311 - - - 12,543
17,319,445 13,629,794 (92,163) (175,251) - 30,681,825
LIABILITIES
Temporary differences - - - - - -
Property, plant & equipment 22,653,422 5,486,805 (608,954) - - 27,531,272
Investment property 5,302,598 3,537,950 (12,874) - - 8,827,675
Pension plan 37,221 - - - 37,221
27,993,241 9,024,755 (621,828) - - 36,396,168
NET DEFERRED TAX LIABILITY 10,673,796 (4,605,039) (529,665) 175,251 - 5,714,343
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