ANNUAL REPORT 2007 - Uralkali

Annual report
26
Mine flooding costs
2007
iFRS
coNSoliDATED
FiNANciAl
STATEMENTS
Dismantling costs 87 -
loss on disposal of fixed assets 64 1,300
State financing (55) -
Brine injection costs 353 153
change in provision for mine flooding 16 (723) 601
Total mine flooding costs (274) 2,054
27
income tax expense
current income tax expense 2,105 1,284
Deferred tax (27) (452)
Income tax expense 2,078 832
Profit before income tax 10,123 4,326
Theoretical tax charge at effective statutory rates 2,430 1,038
Tax effect of items which are not deductible or assessable for taxation purposes:
Mine flooding costs include costs associated with flooding at Mine 1 (Note 5):
2007 2006
non-deductible expenses 289 185
non-taxable income - (5)
Difference in tax rates* (327) (161)
Regional tax allowance (314) (225)
Consolidated tax charge 2,078 832
Note
Dismantling costs are mainly represented by labour costs, depreciation expenses and
costs paid to service organisations for dismantling of equipment in shafts on Mine 1.
At December 31, 2006 loss on disposal of fixed assets included VAT reversed of RR 92.
income before taxation and minority interests for financial reporting purposes is
reconciled to tax expense as follows:
2007
2006
in March 2006 the parliament of the Perm region in the Russian Federation, where the
company is located, approved an amendment to the regional law on Perm regional part of the
income tax. The amendment provides for a reduced to 20% income tax rate for companies with
average number of personnel exceeding 10 persons and income, calculated in accordance with
the statutory Tax code exceeding RR 0,1. Previously reduced income tax rate was allowed to the
companies with capital expenditures of more than 20% of annual taxable net income.
in 2007 and 2006 the company met all requirements specified above that qualifies for reduced
to 20% income tax rate approved by the parliament of the Perm region.
* Profit before taxation on Switzerland, Gibraltar and Belorussian operations is assessed based on effective rate of 7% (December 31, 2006: 8%).
2007
2006
82