PC3. Taxes
AP ACCOUNTING PRINCIPLES
Due to the links between accounting and taxation, the deferred tax liability on untaxed reserves in the Parent Company is recognized in the Parent Company’s annual accounts as a component of untaxed reserves.
SEKm |
2015 |
2014 |
Deferred tax |
349 |
–70 |
Current tax |
0 |
1 |
IS Total |
349 |
–69 |
Explanation of tax expense
The difference between the recognized tax expense and expected tax expense is explained below. The expected tax expense is calculated based on profit before tax in each country multiplied by the current tax rate.
|
2015 |
2014 |
||
Reconciliation |
SEKm |
% |
SEKm |
% |
IS Profit before tax |
10,081 |
|
4,099 |
|
IS Tax expense/income |
349 |
3.5 |
–69 |
–1.7 |
Expected tax |
2,218 |
22.0 |
902 |
22.0 |
Difference |
–1,869 |
–18.5 |
–971 |
–23.7 |
|
|
|
|
|
Difference is due to: |
|
|
|
|
Taxes related to prior periods |
14 |
0.2 |
–50 |
–1.2 |
Non-taxable dividends from subsidiaries |
–2,351 |
–23.3 |
–1,364 |
–33.3 |
Non-taxable Group contributions from subsidiaries |
–50 |
–0.5 |
–53 |
–1.3 |
Non-deductible Group contributions to subsidiaries |
487 |
4.8 |
457 |
11.1 |
Assumed replacement reserves for land |
– |
– |
35 |
0.9 |
Other non-taxable/non-deductible items |
31 |
0.3 |
4 |
0.1 |
Total |
–1,869 |
–18.5 |
–971 |
–23.7 |
The Parent Company participates in the Group’s tax pooling arrangement and pays the majority of the Group’s total Swedish taxes. These are now recognized in profit and loss as Group contributions paid and received.
SEKm |
2015 |
2014 |
Value, January 1 |
–18 |
–18 |
Current tax expense |
0 |
1 |
Paid tax |
–8 |
–1 |
BS Value, December 31 |
–26 |
–18 |
SEKm |
2015 |
2014 |
Changes in temporary differences |
335 |
–20 |
Adjustments for prior periods |
14 |
–50 |
Total |
349 |
–70 |
SEKm |
Value, January 1 |
Deferred tax expense |
Value, December 31 |
Land and buildings |
1,530 |
9 |
1,539 |
Provisions for pensions |
–123 |
–21 |
–144 |
Tax loss carryforwards |
–759 |
360 |
–399 |
Other |
–39 |
1 |
–38 |
BS Total |
609 |
349 |
958 |
Appropriations and untaxed reserves
Accumulated depreciation in excess of plan totaling SEK 230m (213) is included in the Parent Company’s untaxed reserves.