| 2015 | 2014 | |
|---|---|---|
| Income taxes charged to the income statement | ||
| Current income taxes | 2,906 | 13,444 |
| Deferred income taxes | -18,792 | -2,680 |
| Total | -15,886 | 10,764 |
| Income taxes charged to other comprehensive income | -2,039 | -774 |
The reconciliation between the actual tax burden and the expected tax burden for the financial years ending on 31 December 2015 and 2014 is as follows:
| 2015 | 2014 | |
|---|---|---|
| Reconciliation | ||
| Profit/(loss) before income taxes | -152,193 | -21,809 |
| Income tax rate parent company | 16,7% | 16,7% |
| Income taxes at expected income tax rate | 25,386 | 3,638 |
| Tax effect from income taxed at other rates | 8,246 | 974 |
| Tax effect from tax-free income | 9,202 | 3,466 |
| Tax effect from non-tax-deductible expenses | -3,564 | -6,490 |
| Tax losses in the current year for which no deferred tax assets were recognised | -13,202 | -8,709 |
| Tax loss carryforwards for which no deferred tax assets were recognised | 61 | 15 |
| Value adjustment of previously capitalised tax loss carryforwards | - | -1,076 |
| Tax burden/relief subsequently recognised for previous years | -1,685 | -293 |
| Regional production tax - Italy (IRAP) | -70 | -1,917 |
| Change in tax rate Italy | -7,696 | - |
| Non-usable withholding tax | -635 | -292 |
| Other | -157 | -80 |
| Income taxes charged to the income statement | 15,886 | -10,764 |
| Effective income tax rate | 10,4% | -49,4% |
Change in tax rate in Italy
In a 9 February 2015 ruling, the Italian constitutional court deemed the so-called Robin Hood tax, an extra tax on energy companies introduced in Italy in 2008, to be unlawful. The subsidiaries in Italy are thus no longer subject to this income tax. In addition, the rate of IRES corporate income tax has been reduced from 27.5 per cent to 24.0 per cent with effect from 1 January 2017. This reduction in the tax rate, which totals 10.5 per cent, results in additional tax expense of TCHF 7,696 (reduction in deferred tax assets). This figure breaks down as TCHF 5,023 for the discontinuation of the Robin Hood tax and TCHF 2,673 for the reduction in the IRES rate.
Deferred income taxes by origin of difference
| 31.12.2015 | 31.12.2014 | |
|---|---|---|
| Deferred tax assets on | ||
| Tangible assets | 30,755 | 25,231 |
| Other non-current assets | 615 | 6,522 |
| Current assets | 10,259 | 16,612 |
| Provisions | 5,925 | 6,749 |
| Liabilities | 13,616 | 22,658 |
| Loss carryforwards/tax credits | 17,431 | 4,997 |
| Total | 78,601 | 82,769 |
| Deferred tax liabilities on | ||
| Tangible assets | 32,688 | 41,854 |
| Other non-current assets | 661 | 3,805 |
| Current assets | 16,285 | 25,006 |
| Provisions | - | 7,219 |
| Liabilities | 8,841 | 1,396 |
| Total | 58,475 | 79,280 |
| thereof disclosed in the balance sheet as: | ||
| Deferred tax assets | 49,046 | 44,122 |
| Deferred tax liabilities | -28,920 | -40,633 |
| Net deferred income tax receivables | 20,126 | 3,489 |
Change in deferred taxes 2015 by category
| Tangible assets | Other non-current assets | Current assets | Provisions | Liabilities | Loss carryforwards tax credits | Total | |
|---|---|---|---|---|---|---|---|
| Opening balance 2015 | -16,623 | 2,717 | -8,394 | -470 | 21,262 | 4,997 | 3,489 |
| Changes in the consolidated income statement | 16,883 | -2,860 | 1,666 | 4,616 | -14,513 | 13,000 | 18,792 |
| Changes in other comprehensive income | - | - | - | 2,039 | - | - | 2,039 |
| Translation differences | -2,264 | 96 | 701 | -174 | -1,974 | -425 | -4,040 |
| Other | 71 | 1 | 1 | -86 | - | -141 | -154 |
| Closing balance 2015 | -1,933 | -46 | -6,026 | 5,925 | 4,775 | 17,431 | 20,126 |
Change in deferred taxes 2014 by category
| Tangible assets | Other non-current assets | Current assets | Provisions | Liabilities | Loss carryforwards tax credits | Total | |
|---|---|---|---|---|---|---|---|
| Opening balance 2014 | -16,088 | 6,542 | 2,312 | -3,638 | 6,143 | 7,660 | 2,931 |
| Changes in the consolidated income statement | -39 | -3,841 | -10,754 | 2,347 | 15,698 | -731 | 2,680 |
| Changes in other comprehensive income | - | - | - | 845 | -71 | - | 774 |
| Translation differences | -496 | 16 | 48 | -24 | -508 | -140 | -1,104 |
| Other | - | - | - | - | - | -1,792 | -1,792 |
| Closing balance 2014 | -16,623 | 2,717 | -8,394 | -470 | 21,262 | 4,997 | 3,489 |
Tax loss carryforwards
Individual Group companies had tax loss carryforwards totalling TCHF 243,275 (previous year: TCHF 114,742) at 31 December 2013, which they can set off in future periods with taxable profits. Deferred tax assets are recognised only to the extent that it is probable that the tax credits can be realised. On the balance sheet date the Group had not recognised tax loss carryforwards of TCHF 153,747 (previous year: 96,560), since the future utilisation of these amounts for tax purposes is not probable.
These are due on the following dates:
Unrecognised tax loss carryforwards
| 31.12.2015 | 31.12.2014 | |
|---|---|---|
| Due within 1 year | - | 1,561 |
| Due in 2-4 years | 38,101 | 9,859 |
| Due in 5-7 years | 83,174 | 40,832 |
| Due after 7 years or no due date | 32,472 | 44,308 |
| Total | 153,747 | 96,560 |