13 TAXES

Income taxes

EUR million 1 Jan–31 Dec 2015 1 Jan–31 Dec 2014
Income taxes on ordinary business operations -2.7 -2.9
Income taxes in respect of prior years
-0.3 0.8
Deferred taxes
-6.4 -1.3





-9.4 -3.3









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




Profit before income taxes
16.7
-1.7

Taxes calculated on the above at the Finnish tax rate (20%)
-3.3
0.3

Differing tax rates of foreign subsidiaries
0.3
-0.4

Tax-exempt income in income statement
0.4
0.5

Non-deductible expenses in income statement
-1.5
-5.2

Deductible non-income statement items
0.9
0.1

Taxable non-income statement items
-0.4
0.0

Use of unrecognised tax losses


0.0

Tax losses for the financial year for which no deferred tax asset was recognised
0.0
0.0

Effect of change in the corporate tax rate
-0.9


Other items*
-4.5
0.4

Taxes for the previous financial year
-0.3
0.8
Taxes in the income statement, total
-9.4
-3.3
*The 2015 figure includes EUR 1.6 million adjustments to previous periods’ taxable profit. The adjustments reduced the amount of the company’s confirmed tax losses. In addition, the figure includes other amounts arising from changes in deferred taxes.

Deferred taxes

EUR million 1 Jan 2015 Translation difference Recognised in income statement Recognised in other compre-hensive income Transactions with owners of the parent company and other changes in equity Acquisitions, divestments and mergers 31 Dec 2015
Deferred tax assets







Tax losses 37.5 -1.1 -3.6


32.9

Pension benefits 0.1 0.0 -0.1 -0.1

0.0

Provisions 6.8 0.0 -0.5


6.3

Financial instruments
0.0 -2.6
2.8
0.2

Property, plant and equipment 1.5 -0.3 -0.4


0.8

Temporary difference from revenue recognition of construction projects 3.6 -0.5 1.0

0.4 4.5

Other temporary differences 2.2 0.3 -1.4

-0.4 0.6
Deferred tax assets, gross 51.8 -1.5 -7.6 -0.1 2.8 0.0 45.4
Offsetting -9.7 0.8 0.5

0.0 -8.4
Deferred tax assets 42.0 -0.8 -7.0 -0.1 2.8
36.9









EUR million 1 Jan 2015 Translation difference Recognised in income statement Recognised in other compre-hensive income Transactions with owners of the parent company and other changes in equity Acquisitions, divestments and mergers 31 Dec 2015
Deferred tax liabilities







Property, plant and equipment and intangible assets 2.9 -0.1 0.7


3.5

Financial instruments 1.0 0.0 -0.1

-0.2 0.6

Accelerated depreciations and voluntary provisions 11.0 0.0 0.6

0.0 11.6

Temporary difference from revenue recognition of construction projects 7.9 -0.7 -1.0


6.1

Other temporary differences 2.5 -0.1 -1.3

0.2 1.3
Deferred tax liabilities, gross 25.3 -1.0 -1.2

0.0 23.1
Offsetting -9.7 0.8 0.5

0.0 -8.4
Deferred tax liabilities 15.6 -0.2 -0.6

0.0 14.7


EUR million 1 Jan 2014 Translation difference Recognised in income statement* Recognised in other comprehensive income Transactions with owners of the parent company and other changes in equity Acquisitions, divestments and mergers 31 Dec 2014
Deferred tax assets







Tax losses 37.7 -1.8 1.8

-0.1 37.5

Pension benefits 0.3 0.0 -0.2 0.0

0.1

Provisions 6.3 -0.9 1.5


6.8

Financial instruments 0.0
-2.5 0.0 2.5


Property, plant and equipment 1.8 0,0 -0.3


1.5

Intangible assets 0.0
0.0




Temporary difference from revenue recognition of construction projects 5.9 -1.9 -0.9

0.6 3.6

Other temporary differences 0.9 -0.1 2.4

-1.0 2.2
Deferred tax assets, gross 53.0 -4.8 1.7 0.0 2.5 -0.6 51.8
Offsetting -14.4 3.4 1.3 0.0

-9.7
Deferred tax assets 38.5 -1.4 3.0 0.0 2.5 -0.6 42.0









EUR million 1 Jan 2014 Translation difference Recognised in income statement* Recognised in comprehensive income items Transactions with owners of the parent company and other changes in equity Acquisitions, divestments and mergers 31 Dec 2014
Deferred tax liabilities







Property, plant and equipment and intangible assets 4.0 -0.1 -1.0


2.9

Financial instruments 0.4 0.0 0.5


1.0

Accelerated depreciations and voluntary provisions 11.0 0.0 0.3

-0.2 11.0

Temporary difference from revenue recognition of construction projects 9.7 -4.4 2.5

0.0 7.9

Other temporary differences 2.5 -0.4 0.7

-0.3 2.5
Deferred tax liabilities, gross 27.6 -4.8 3.1

-0.6 25.3
Offsetting -14.4 3.4 1.3 0.0

-9.7
Deferred tax liabilities 13.2 -1.4 4.4 0.0
-0.6 15.6

* Includes the effect of discontinued operations

The company has recorded the deferred tax assets 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. A large part of the tax losses in Finland arise from the damages that the District Court ordered in 2013 related to the asphalt cartel. At the end of 2015, tax losses in the Group's Finnish companies totalled EUR 19.4 million (23.1) and they can be carried forward for 10 years. The amount of tax losses in the Group's Norwegian companies stood at EUR 11.5 million (12.1) at the end of 2015, 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 material.

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