7.1. Tax recognised in the statement of profit or loss
| For the period 01.01.2014 -31.12.2014 | For the period 01.01.2013 - 31.12.2013* restated | |
|---|---|---|
| Current tax expense: | ||
| Current year | 75 056 | 74 094 |
| Adjustment for prior years | (4 789) | 461 |
| 70 267 | 74 555 | |
| Deferred tax expense: | ||
| Origination and reversal of temporary differences | (32 536) | (56 116) |
| (32 536) | (56 116) | |
| Tax expense recognised in the statement of profit or loss | 37 731 | 18 439 |
* Financial information restated due to completion of acquisition accounting of African Investment Group S.A., as presented in point 1.2.1 in the Notes.
7.2 Effective tax rate
| For the period 01.01.2014 - 31.12.2014 | For the period 01.01.2013 - 31.12.2013* restated | |
|---|---|---|
| Profit before tax | 303 539 | 727 760 |
| Tax using the Group’s domestic tax rate | 57 672 | 138 274 |
| Effect of tax rates in foreign jurisdictions | (1 238) | -570 |
| Tax exempt income (+/-) | (1 100) | (108 951) |
| Non deductible expenses (+/-) | 10 976 | 16 873 |
| Tax effect of previously unrecognised tax losses(+/-) | (1 326) | 304 |
| Recognition of investment tax credits (-) | (27 083) | (24 871) |
| Other(+/-) | -170 | (2 620) |
| Tax expense in the statement profit or loss | 37 731 | 18 439 |
| Effective tax rate | 12.4% | 2.5% |
* Financial information restated due to completion of acquisition accounting of African Investment Group S.A., as presented in point 1.2.1 in the Notes.
The effective tax rate in 2014 of 12.4% results from recognition of deferred tax assets on investment tax credit resulting from Grupa Azoty PUŁAWY’s activities in the special economic zone and based on the capital expenditures made in the special economic zone.
The effective tax rate in 2013 of 2.5% results from:
- recognition of gain on bargain purchase, which is non-taxable income,
- recognition of deferred tax assets on investment tax credit resulting from Grupa Azoty PUŁAWY’s activities in the special economic zone and based on the capital expenditures made in the special economic zone since Grupa Azoty PUŁAWY’s acquisition,
- remeasurement of pre-existing interest concerning 10.3% of shares in Grupa Azoty PUŁAWY to fair value at the acquisition date, which was recognised in the financial income.
7.3 Income tax recognised in other comprehensive income
| For the period 01.01.2014 - 31.12.2014 | For the period 01.01.2013 - 31.12.2013 | |
|---|---|---|
| Tax on items that will never be reclassified to profit or loss (+/-) | (4 420) | -678 |
| Revaluation of net liabilities from defined benefit plans | (4 420) | -678 |
| Tax on items that are or may be reclassified to profit or loss (+/-) | -559 | (8 239) |
| Change in fair value of available-for-sale financial assets | -559 | (8 239) |
| Tax expense recognised in other comprehensive income | (4 979) | (8 917) |
7.4. Aktywa oraz rezerwa z tytułu odroczonego podatku dochodowego
| Deferred tax assets (-) | Deferred tax liabilities (+) | |||
|---|---|---|---|---|
| 31.12.2014 | 31.12.2013* restated | 31.12.2014 | 31.12.2013* restated | |
| Property, plant and equipment | (87 814) | (74 033) | 436 104 | 420 345 |
| Investment property | - | - | 6 108 | 5 941 |
| Intangible assets | (7 637) | (7 729) | 84 201 | 102 379 |
| Financial assets | (13 852) | (12 198) | 21 101 | 23 751 |
| Inventories | (24 310) | (6 463) | 24 872 | 4 090 |
| Trade and other receivables | (3 153) | (1 650) | 1 430 | 4 702 |
| Trade and other payables | (36 377) | (17 886) | 203 | 617 |
| Other assets | (1 552) | -748 | 329 | 335 |
| Employee benefits | (74 668) | (68 226) | - | - |
| Provisions | (57 007) | (53 804) | - | - |
| Other financial payables | -709 | -351 | - | 95 |
| Investment tax credits | (91 059) | (79 544) | - | - |
| Tax losses carried forward | (30 428) | (63 767) | - | - |
| Other | (10 408) | (5 546) | 9 377 | 10 218 |
| Deferred tax assets(-)/liabilities(+) | (438 974) | (391 945) | 583 725 | 572 473 |
| Offsetting | 352 033 | 288 405 | (352 033) | (288 405) |
| Deferred tax liabilities recognised in the statement of financial position (+) | (86 941) | (103 540) | 231 692 | 284 068 |
* Financial information restated due to completion of acquisition accounting of African Investment Group S.A., as presented in point 1.2.1 in the Notes.
Na dzień 31 grudnia 2014 roku Grupa wykazywała aktywa z tytułu odroczonego podatku dochodowego w kwocie 30 428 tys. zł (31 grudnia 2013 roku: 63 767 tys. zł) w odniesieniu do strat podatkowych, które uznano za możliwe do wykorzystania na podstawie prognoz przyszłych dochodów podatkowych. Spółki Grupy będą mogły rozliczyć straty w latach 2015-2019.
7.5 Change in temporary differences
| Movement in deferred tax balances recognised in (+/-) | |||||
|---|---|---|---|---|---|
| Balance at 01.01.2014 | Profit or loss | Other comprehensive income | Foreign currency translation differences recognized in other comprehensive income | Balance at 31.12.2014 | |
| Property, plant and equipment | 346 312 | 43 | - | 1 935 | 348 290 |
| Investment property | 5 941 | 167 | - | - | 6 108 |
| Intangible assets | 94 650 | (17 940) | - | -146 | 76 564 |
| Financial assets | 11 553 | (3 745) | -559 | - | 7 249 |
| Inventories | (2 373) | 2 922 | - | 13 | 562 |
| Trade and other receivables | 3 052 | (4 778) | - | 3 | (1 723) |
| Trade and other payables | (17 269) | (18 908) | - | 3 | (36 174) |
| Other assets | -413 | -816 | - | 6 | (1 223) |
| Employee benefits | (68 226) | (2 019) | (4 420) | -3 | (74 668) |
| Provisions | (53 804) | (3 200) | - | -3 | (57 007) |
| Other financial payables | -256 | -453 | - | - | -709 |
| Investment tax credits | (79 544) | (11 515) | - | - | (91 059) |
| Tax losses | (63 767) | 33 408 | - | -69 | (30 428) |
| Other | 4 672 | (5 702) | - | -1 | (1 031) |
| Deferred tax assets(-)/liabilities(+) | 180 528 | (32 536) | (4 979) | 1 738 | 144 751 |
| Movement in deferred tax balances recognised in (+/-) | |||||
|---|---|---|---|---|---|
| Balance at 01.01.2013 | Profit or loss | Other comprehensive income | Acquired in business combinations | Balance at 31.12.2013* restated | |
| Property, plant and equipment | 120 361 | (17 813) | - | 243 764 | 346 312 |
| Investment property | - | 5 941 | - | - | 5 941 |
| Intangible assets | 27 313 | (21 571) | - | 88 908 | 94 650 |
| Financial assets | 9 612 | (3 871) | - | 5 812 | 11 553 |
| Inventories | 15 | (8 041) | - | 5 653 | (2 373) |
| Trade and other receivables | 2 686 | -143 | - | 509 | 3 052 |
| Trade and other payables | (1 969) | -231 | - | (15 069) | (17 269) |
| Other assets | 7 941 | -115 | (8 239) | - | -413 |
| Employee benefits | (40 347) | (2 341) | -678 | (24 860) | (68 226) |
| Provisions | (39 203) | (7 536) | - | (7 065) | (53 804) |
| Loans | -714 | 714 | - | - | - |
| Other financial payables | -685 | 429 | - | - | -256 |
| Investment tax credits | - | (9 453) | - | (70 091) | (79 544) |
| Tax losses carried forward | (64 132) | 5 682 | - | (5 317) | (63 767) |
| Other | (2 445) | 2 233 | - | 4 884 | 4 672 |
* Financial information restated due to completion of acquisition accounting of African Investment Group S.A., as presented in point 1.2.1 in the Notes.
7.6 Unrecognised deferred tax assets/liabilities
The Group has not recognised deferred tax assets related to the following titles:
| As at 31.12.2014 | As at 31.12.2013 | |
|---|---|---|
| Tax losses | 428 | 443 |
| Temporary differenes | 1 165 | 1 131 |
| 1 593 | 1 574 |