Auris Medical Holding AG (ifrs-full:DisclosureOfIncomeTaxExplanatory)

Taxation

The Group’s income tax expense recognized in the consolidated statement of profit or loss and other comprehensive loss was as follows:



	2017		2016	2015
Deferred income tax expense	(21,415	)	—	(32,761	)
Deferred income tax gain	39,188		131,055	32,761
	17,773		131,055	—

The Group’s effective income tax expense differed from the expected theoretical amount computed by applying the Group’s applicable weighted average tax rate of 21.7% in 2017 (2016: 21.5%, 2015: 21.9%) as summarized in the following table:



Reconciliation	2017		2016		2015
Loss before income tax	(24,427,247	)	(30,793,306	)	(29,705,063	)
Income tax at statutory tax rates applicable to results in the respective countries	5,311,030		6,629,237		6,493,569
Effect of unrecognized temporary differences	193,598		(27,072	)	(105,395	)
Effect of unrecognized taxable losses	(5,429,935	)	(6,360,837	)	(6,438,609	)
Effect of previously unrecognised deferred tax asset	39,189		131,055		—
Effect of expenses deductible for tax purposes	9,696		2,505		—
Effect of expenses not considerable for tax purposes	—		23,716		—
Effect of impact from application of different tax rates	(105,805	)	(267,695	)	—
Effect of unrecognized taxable losses in equity	—		146		50,435
Income tax gain	17,773		131,055		—

The tax effect of taxable temporary differences that give rise to deferred income tax liabilities or to deferred income tax assets as of December 31 is presented below:



Deferred Tax Liabilities	December 31, 2017		December 31, 2016
Intangible assets	(349,052	)	(327,637	)
Hercules Loan Facility	(47,477	)	(76,390	)
Total	(396,529	)	(404,027	)

Deferred Tax Asset	December 31, 2017		December 31, 2016
Net operating loss (NOL)	217,720		207,445
Total	217,720		207,445

Deferred Tax, net	(178,809	)	(196,582	)



Deferred Tax 2017	Opening Balance		Recognized in Profit or Loss		Recognized in Equity	Closing Balance
Intangible assets	(327,637	)	(21,415	)	—	(349,052	)
Hercules Loan Facility	(76,390	)	28,913		—	(47,477	)
Net operating loss (NOL)	207,445		10,275		—	217,720
Total	(196,582	)	17,773		—	(178,809	)


Deferred Tax 2016	Opening Balance		Recognized in Profit or Loss		Recognized in Equity	Closing Balance
Intangible assets	(327,637	)	—		—	(327,637	)
Hercules Loan Facility	—		(76,390	)	—	(76,390	)
Net operating loss (NOL)	—		207,445		—	207,445
Total	(327,637	)	131,055		—	(196,582	)

As of December 31, 2017, the Group had total gross tax loss carry forwards amounting to CHF 142 million (2016: CHF 115.4 million), of which CHF 140.9 million related to Auris Medical AG, Auris Medical Holding AG and Otolanum AG in Switzerland and CHF 1.1 million to Auris Medical Inc. in the United States (2016: CHF 114.3 million for Auris Medical AG and Otolanum AG and CHF 1.1 million for Auris Medical Inc.).

The Group’s tax loss carry-forwards with their expiry dates are as follows:



	December 31, 2017	December 31, 2016
Within 1 year	1,754,398	1,859,601
Between 1 and 3 years	31,089,191	9,928,391
Between 3 and 7 years	108,055,089	102,542,641
More than 7 years	1,072,260	1,087,543
Total	141,970,938	115,418,176

The tax effect of the major unrecognized temporary differences and loss carry-forwards is presented in the table below:



	December 31, 2017	December 31, 2016
Deductible temporary differences
Employee benefit plan	433,816	450,227
Stock option plans	400,764	—
Total potential tax assets	834,580	450,227
Taxable unrecognized temporary differences
Property and equipment	—	—
Total unrecognized potential tax liabilities	—	—
Offsetting potential tax liabilities with potential tax assets	—	—
Net potential tax assets from temporary differences not recognized	834,580	450,227
Potential tax assets from loss carry-forwards not recognized	29,959,963	25,082,968
Total potential tax assets from loss carry-forwards and temporary differences not recognized	30,794,543	25,533,195

Auris Medical Holding AG | CIK:0001601936 |

ifrs-full:DisclosureOfIncomeTaxExplanatory