13 TAXES

Income taxes

EUR 1,000 1 Jan–31 Dec 2013 1 Jan–31 Dec 2012
Income taxes on normal business operations -2,826 -3,914
Income taxes in respect of previous years
-1,338 98
Deferred taxes
28,187 -4,866


24,023 -8,682



Reconciliation of taxes on the income statement and taxes calculated at the Finnish tax rate




Profit before taxes
-117,521 29,073

Taxes calculated on the above at the Finnish tax rate
28,793 -7,123

Differing tax rates of foreign subsidiaries
1,631 504

Tax-exempt income in income statement
1,275 1,031

Non-deductible expenses in income statement
-2,570 -3,177

Deductible non-income statement items

200 976

Taxable non-income statement items

-2 -386

Use of unrecognised tax losses
77 123

Tax losses for the financial year for which no deferred tax asset was recognised -7 -723

Effect of change in the corporate tax rate
-4,460

Other items
423 -4

Taxes for the previous financial year

-1,338 98
Taxes on the income statement, total
24,023 -8,682









Deferred taxes

EUR 1,000 1 Jan
2013
Translation difference Recognised in income statement Recognised in other comprehensive income Transactions with owners of the parent company Acquisitions, divestments and mergers 31 Dec 2013
Deferred tax asset
Tax losses 19,350 -1,914 20,280 0 37,715
Pension benefits 1,447 -164 -22 -913 348
Provisions 3,350 -275 3,192 6,267
Financial instruments 142 -1,715 -127 1,715 15
Property, plant and equipment 1,776 0 27 1,803
Intangible assets 22 22
Temporary difference from revenue recognition of projects 1,755 -496 4,615 5,874
Other temporary differences 734 13 842 -653 936
Deferred tax asset, gross 28,576 -2,836 27,219 -1,040 1,715 -653 52,981
Offsetting -5,100 950 -10,417 127 -14,440
Deferred tax asset, net 23,475 -1,886 16,802 -913 1,715 -653 38,540









EUR 1,000 1 Jan
2013
Translation difference Recognised in income statement Recognised in other comprehensive income Transactions with owners of the parent company Acquisitions, divestments and mergers 31 Dec 2013
Deferred tax liabilities
Property, plant and equipment and intangible assets 4,288 -258 -647 642 4,025
Available-for-sale financial assets 5 -5
Financial instruments 441 441
Accelerated depreciations 13,560 -207 -2,397 10,956
Temporary difference from revenue recognition of projects 8,806 -1,003 1,923


9,727
Other temporary differences 3,172 -312 154 -552 2,461
Deferred tax liabilities, gross 30,271 -1,780 -967 -5 90 27,609
Offsetting -5,100 950 -10,417 127 -14,440
Deferred tax liabilities, net 25,171 -830 -11,384 122 90 13,168









EUR 1,000 1 Jan
2012
Translation difference Recognised in income statement * Recognised in other comprehensive income Transactions with owners of the parent company Acquisitions, divestments and mergers 31 Dec 2012
Deferred tax asset






Tax losses 17,698 448 1,209 -5 19,350
Pension benefits 2,133 37 -723 1,447
Provisions 3,928 133 -711 3,350
Financial instruments 305 -163 142
Property, plant and equipment 805 0 971 1,776
Intangible assets 7 16 22
Temporary difference from revenue recognition of projects 888 10 856 1,755
Other temporary differences 1,254 -70 -423 -26 734
Deferred tax asset, gross 27,017 558 1,195 -163 -31 28,576
Offsetting -4,422 -112 -566 -5,100
Deferred tax asset, net 22,595 446 629 -163 -31 23,475









EUR 1,000 1 Jan
2012
Translation difference Recognised in income statement * Recognised in other comprehensive income Transactions with owners of the parent company Acquisitions, divestments and mergers 31 Dec 2012
Deferred tax liabilities
Property, plant and equipment and intangible assets 4,210 364 -529 243 4,288
Available-for-sale financial assets 5 5
Financial instruments 1,298 -858 441
Accelerated depreciations 12,488 177 1,618 -724 13,560
Temporary difference from revenue recognition of projects 8,363 194 249 8,806
Other temporary differences 1,088 -176 2,451 -191 3,172
Deferred tax liabilities, gross 26,149 560 5,087 5 -858 -672 30,271
Offsetting -4,422 -112 -566 -5,100
Deferred tax liabilities, net 21,727 448 4,521 5 -858 -672 25,171

* Includes the changes in deferred tax of discountined operations booked to income taxes.

The company has recorded the deferred tax asset from tax losses to the amount it considers, based on its profit forecasts, to be utilizable in the future. The amount of tax losses has increased especially due to non-recurring items, which are not expected to reoccur in the future. In 2013, the amount of tax losses in Finland was increased by the damages that the District Court ordered Lemminkäinen to pay related to the asphalt cartel. At the end of 2013, tax losses in the group's Finnish companies totaled EUR 19.5 million (EUR 5.5 mill) and they can be carried forward for 10 years. The amount of tax losses in the group's Norwegian companies at the end of 2013 stood at EUR 14.6 million (EUR 9.3 mill.), and they can be carried forward indefinitely.

No deferred tax liability is recognised in respect of the undistributed profits of foreign subsidiaries because the funds are permanently invested in operations abroad.