13 Taxes

Income taxes

EUR 1,000 1 Jan–31 Dec 2014 1 Jan–31 Dec 2013
Income taxes on normal business operations -2,859 -2,820
Income taxes in respect of prior years
815 -1,338
Deferred taxes
-1,302 24,043


-3,346 19,885



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




Profit before income taxes -1,654
-116,089

Taxes calculated on the above at the Finnish tax rate 331
28,442

Differing tax rates of foreign subsidiaries -353
1,631

Tax-exempt income in income statement 511
1,275

Non-deductible expenses in income statement -5,174
-2,512

Deductible non-income statement items 107
200

Taxable non-income statement items -6
-2

Use of unrecognised tax losses 40
77

Tax losses for the financial year for which no deferred tax asset was recognised -22
-7

Effect of change in the corporate tax rate

-4,345

Other items 404
-3,536

Taxes for the previous financial year 815
-1,338
Taxes in the income statement, total -3,346
19,885









Deferred taxes

EUR 1,000 1 Jan 2014 Translation difference Recognised in income statement* Recognised in other comprehensive income Transactions with owners of the parent company Acquisitions, divestments and mergers 31 Dec 2014
Deferred tax asset
Tax losses 37,715 -1,815 1,757 -145 37,512
Pension benefits 348 -4 -193 0 150
Provisions 6,267 -930 1,468
6,804
Financial instruments 15
-2,474 -15 2,474
Property, plant and equipment 1,803 0 -282 1,521
Intangible assets 22 -22
Temporary difference from revenue recognition of construction projects 5,874 -1,923 -917 576 3,610
Other temporary differences 936 -132 2,353 -994 2,163
Deferred tax asset, gross 52,981 -4,805 1,689 -15 2,474 -562 51,761
Offsetting -14,440 3,392 1,299 15

-9,735
Deferred tax asset, net 38,540 -1,413 2,987 0 2,474 -562 42,026









EUR 1,000 1 Jan 2014 Translation difference Recognised in income statement* Recognised in other comprehensive income Transactions with owners of the parent company Acquisitions, divestments and mergers 31 Dec 2014
Deferred tax liabilities
Property, plant and equipment and intangible assets 4,025 -80 -1,001
2,944
Financial instruments 441 0 544
985
Accelerated depreciations 10,956 12 298 -237 11,028
Temporary difference from revenue recognition of construction projects 9,727 -4,375 2,518

-3 7,867
Other temporary differences 2,461 -354 715 -328 2,494
Deferred tax liabilities, gross 27,609 -4,797 3,074
-568 25,318
Offsetting -14,440 3,392 1,299 15
-9,735
Deferred tax asset, net 13,168 -1,404 4,373 15 -568 15,583

* Includes the effect of discontinued operations

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 construction 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 construction 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 asset, net 25,171 -830 -11,384 122
90 13,168

* Includes the effect of discontinued operations

The company has recorded the deferred tax asset from tax losses to the amount it considers, based on its profit forecasts, to be utilisable 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 2014, tax losses in the Group's Finnish companies totalled EUR 23.1 million (EUR 19.5 mill.) and they can be carried forward for 10 years. The amount of tax losses in the Group's Norwegian companies stood at EUR 12.1 million (EUR 14.6 mill.) at the end of 2014, and they can be carried forward indefinitely. The amount of the company’s tax losses, from which deferred tax asset has not been recorded, is not significant.

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


 
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