Note 26 - Income tax

The following is a specification of the difference between the accounting profit before tax, the year's tax base and the year's tax charge.
Wealth tax is classified as other operating expenses in conformity with IAS 12.

Parent Bank   Group
2013 2014 (NOK million) 2014 2013
1,701 1,777 Result before tax 2,143 1,758
-426 -566 +/- permanent differences * -813 -375
290 133 +/- change in temporary differences as per specification 161 379
- - + correction income to be brought forward - -46
- - + deficit to be brought forward -15 -14
1,566 1,344 Year's tax base/taxable income 1,476 1,701
         
438 363 Of which payable tax 398 476
438 363 Payable tax in the balance sheet 398 476
0 -22 (Excess)/short tax provision last year -22 0
439 341 Year' change in payable tax 377 477
         
438 363 Tax payable on profit for the year 398 476
- 27 Tax effect of issue cost reflected in equity 28 -
-78 -36 +/- change in deferred tax -40 -86
0 -22 +/- too much/too little set aside for payable tax in previous years -23 -1
-2 -1 + withholding tax -1 -2
358 330 Tax charge for the year 362 388
         
    Change in net deferred tax liability    
-78 -36 Deferred tax shown through profit/loss -40 -86
12 -27 Deferred tax shown through equity -28 12
- 78 Correction payable tax/deferred tax, previous years * 73 -
-66 15 Total change in net deferred tax liability 5 -74
* Due to changes in temporary differences between presented annual accounts and final tax asessment papers

 

Deferred tax in
balance sheet
  Deferred tax in
balance sheet
2013 2014 Composition of deferred tax carried in the balance sheet and deferred tax recognised in the income statement 2014 2013
    Temporary differences:    
- - - Business assets 69 94
- - - Leasing items 113 74
82 - - Pension liability 3 84
195 122 - Securities 122 195
488 1,043 - Hedge derivatives 1,043 488
56 1 - Other temporary differences 3 56
820 1,166 Total tax-increasing temporary differences 1,353 991
221 315 Deffered tax 365 269
         
    Temporary differences:    
-20 -11 - Business assets -16 -24
- -19 - Pension liability -26 -2
-263 -4 - Securities -95 -263
-474 -984 - Hedge derivatives -984 -474
- -30 - Other temporary differences -168 -136
- - - Deficit carried forward -62 -74
-757 -1,048 Total tax-decreasing temporary differences -1,350 -974
-204 -283 Deferred tax asset -365 -263
17 32 Net 1 6

 

The above table comprises temporary differences from all consolidated companies shown gross. At the company level tax-increasing and tax-reducing temporary differences are shown net. At the group level recognition is on a gross basis in conformity with IAS 12 with each company being presented separately in the calculation of the Group's tax benefit and deferred tax:

    2014 2013
Tax benefit recorded 31.12 44 18
Deferred tax recorded 31.12 45 23

 

Recognised in income statement    Recognised in income statement
2013 2014 Composition of deferred tax carried in the balance sheet and deferred tax recognised in the income statement 2014 2013
    Temporary differences:    
- -9  - Business assets 25 22
- -  - Leasing items  -39 46
-61  -   - Pension liability -32 -60
-34 -67  - Securities 73 48
-92 -555  - Hedge derivatives -555 129
- -  - Other temporary differences -1 2
-187 -631 Total tax-increasing temporary differences -529 187
-52 -170 Deffered tax -143 52
         
    Temporary differences:    
5 -  - Business assets -8 6
- 101  - Pension liability 24 -3
343 124  - Securities 22 262
129 510  - Hedge derivatives 510 -92
- 30  - Other temporary differences 41 81
- -  - Deficit carried forward -12 -118
477 765 Total tax-decreasing temporary differences 575 134
134 206 Deferred tax asset 155 38
-3 - Change in tax rate from 28 % to 27 % - -4
78 36 Net 13 86
         
         
2013 2014 Reconciliation of tax charge for the period recognised against profit and loss to profit before tax  2014 2013
476 480 27 (28 last year) % of profit before tax 579 492
-119 -153 Non-taxable profit and loss items (permanent differences) * -220 -105
- - Recognised deferred tax previous years 0 -1
- 27 Tax effect of issue cost reflected in equity 28 -
3 - Change in tax rate from 28 % to 27 % - 4
-2 -1 Withholding tax -1 -2
0 -22 Too much/little tax provision previous years -23 -1
358 330 Tax for the period recognised in the income statement 363 388
21 % 19 % Effective tax rate  17 % 22 %
         
* Includes non-deductible costs and and deduction for profit share related to associates and joint ventures (profit shares are taken out having already been taxed at the respective companies).

Annual report and notes

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