BANCOLOMBIA SA | CIK:0001071371 | 3

  • Filed: 4/30/2018
  • Entity registrant name: BANCOLOMBIA SA (CIK: 0001071371)
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  • SEC filing page: http://www.sec.gov/Archives/edgar/data/1071371/000114420418023396/0001144204-18-023396-index.htm
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    • ifrs-full:DisclosureOfIncomeTaxExplanatory

    NOTE 11. INCOME TAX
     
    The income tax is recognized in each country where the Bank has operations, in accordance with the tax regulations in force in each of the jurisdictions.
     
    The deferred tax asset and liability is recognized based on the temporary differences arising from the future estimate of tax and accounting effects attributable to differences between assets and liabilities in the Financial Statements and its tax base.
     
    In order to adequately comply with tax obligations on a timely basis, the Bank constantly analyzes and interprets current tax legislation that is applicable to its operations.
     
    11.1.
    Components recognized in the Income Statement for the period:
     
     
    December 31,
    2017
    December 31,
    2016
    December 31,
    2015
     
    In millions of COP
    Current tax
     
    Fiscal year
    1,041,454
    813,355
    346,556
    Previous fiscal years
    3,967
    2,519
    6,159
    Total current tax
    1,045,421
    815,874
    352,715
    Deferred tax
     
     
     
    Fiscal year
    193,177
    360,958
    296,535
    Total deferred tax
    193,177
    360,958
    296,535
    Total tax
    1,238,598
    1,176,832
    649,250
     
    11.2.
    Components recognized in Other Comprehensive Income (OCI)
     
    December 31, 2017
    In millions of COP
     
    Amount before
    taxes
    Expenses or
    (income) per tax
    Net taxes
    Remeasurement loss related to defined benefit liability
    3,753
    (3,725)
    28
    Net profit (loss) by financial instruments measured at fair value
    29,095
    9,789
    38,884
    Gain or loss on net investment hedge in foreign operations
    449,640
    (6,895)
    442,745
    Net
    482,488
    (831)
    481,657
     
    See Other Comprehensive Income
     
    December 31, 2016
    In millions of COP
     
    Amount before
    taxes
    Expenses or
    (income) per tax
    Net taxes
    Remeasurement loss related to defined benefit liability
    626
    (10,966)
    (10,340)
    Net profit (loss) by financial instruments measured at fair value
    208,276
    24,341
    232,617
    Net
    208,902
    13,375
    222,277
     
    See Other Comprehensive Income
     
    December 31, 2015
    In millions of COP
     
    Amount before
    taxes
    Expenses or
    (income) per tax
    Net taxes
    Remeasurement loss related to defined benefit liability
    (59,434)
    9,312
    (50,122)
    Net profit (loss) by financial instruments measured at fair value
    128,271
    9,052
    137,323
    Net
    68,837
    18,364
    87,201
     
    See Other Comprehensive Income
     
    11.3.
    Other disclosures
     
    11.3.1.
    Explanation of applicable rates
     
    The following are nominal rates of the income tax in each of the countries where the Bank has operations that are subject to income tax:
     
    Companies domiciled in Colombia
     
    Income tax and the income tax for equality (CREE) were applied at the following rates for 2016 and 2017 in accordance with Law No. 1739 of 2014 and Law No. 1819 of 2016:
     
     
    2017
    2016
    2015
    Income
    34%
    25%
    25%
    CREE
    0%
    9%
    9%
    Surcharge
    6%
    6%
    5%
    Total
    40%
    40%
    39%
     
    Companies domiciled in other countries
     
     
     
    2015
    2016
    2017
    2018
    2019
    As from 2020
    Companies from Peru
    Income
    30%
    28%
    29.5%
    29.5%
    29.5%
    29.5%
    Companies from Panama
    Income
    25%
    25%
    25%
    25%
    25%
    25%
    Companies from El Salvador
    Income
    30%
    30%
    30%
    30%
    30%
    30%
    Companies from Guatemala
    Income
    25%
    25%
    25%
    25%
    25%
    25%
     
    11.3.2.
    Amount of temporary differences in subsidiaries, branches, associates on which no charged deferred tax has been recognized
     
     
    December 31, 2017
    December 31, 2016
    In millions of COP
    Temporary differences
     
     
    Local Subsidiaries
     (1,043,724)
    (234,975)
    Foreign Subsidiaries
     (4,533,672)
    (4,547,623)
     
    In accordance with IAS 12, no deferred tax was recognized due to the fact that management are able to control the future time when those differences are reverted, and that this is not expected to take place in the foreseeable future.
     
    11.3.3.
    Temporary differences to December 31, 2017
     
    The net deferred tax assets and liabilities by company disclosed in the Statement of Financial:
     
     
    December 31,
    2017
    December 31,
    2017
    December 31,
    2016
    December 31,
    2016
    In millions of COP
    Company
    Deferred tax
    asset
    Deferred tax
    liability
    Deferred tax
    asset
    Deferred tax
    liability
    Arrendadora Financiera S.A.
    299
    - 
    -
    (87)
    Arrendamiento Operativo CIB S.A.C.
    -
    -
    370
    -
    Bagrícola Costa Rica S.A.
    56
    -
    68
    -
    Grupo Agromercantil Holding
    -
    (29,924)
    -
    (38,622)
    Banca de Inversión Bancolombia S.A.
    -
    (26,432)
    -
    (99,504)
    Banco Agrícola S.A.
    46,328
    -
    43,594
    -
    Bancolombia S.A.
    -
    (1,368,062)
    -
    (1,152,726)
    Banistmo S.A. y Filiales
    96,533
    -
    166,421
    -
    BIBA Inmobiliaria S.A.S.
    -
    (5)
    -
    (10)
    Fideicomiso “Lote Abelardo Castro”
    -
    (188)
    -
    (171)
    Fiduciaria Bancolombia S.A.
    1,808
    -
    6,483
    -
    FiduPerú S.A Sociedad Fiduciaria
    -
    -
    165
    -
    Inversiones CFNS S.A.S.
    -
    (700)
    -
    (1,042)
    Renting Colombia S.A.S.
    -
    (5,466)
    -
    (19,753)
    Transportempo S.A.S
    509
    -
    285
    -
    Valores Banagricola S.A.
    10
    -
    -
    -
    Valores Bancolombia S.A.
    3,071
    -
    5,476
    -
    Valores Simesa S.A.
    -
    (9,421)
    -
    (13,439)
    Net Deferred Tax by Company
    148,614
    (1,440,198)
    222,862
    (1,325,354)
    Net Deferred Tax
     
    (1,291,584)
     
    (1,102,492)
     
    11.3.4.
    Assets and Liabilities deferred tax without netting per company 
     
    Deferred tax
    summary in
    Balance accounts
    December 31,
    2016
    With effects on the
    statement of income
    and Foreign
    currency translation
    adjustments
    With OCI
    effects
    Eliminations
    Reclassifications
    December 31,
    2017
    In millions of COP
    Deferred tax asset
    757,874
     (167,907)
     15,021
     (3,122)
     999
     602,865
    Deferred tax liability
    (1,860,366)
     (7,014)
     (14,190)
     (15,939)
     3,060
    (1,894,449)
    Net deferred tax
    (1,102,492)
      (174,921)
     831
     (19,061)
     4,059
    (1,291,584)
     
    The deferred tax disclosed in section 11.1 corresponds to deferred tax assets and liabilities without eliminations in the amount of COP 174,921, plus eliminations in the amount of COP 19,061, less the difference for foreign currency translation adjustments that is contained in the movement of balance sheet accounts of COP (805).
     
    With effects on the statement of income
     
     
    December 31, 2016
    Realization
    Increase
    December 31, 2017
    In millions of COP
    Deferred tax asset:
     
     
     
     
    Premises and equipment
    19,721
    7,258
    8,690
    21,153
    Employee benefits
    152,070
    9,252
    18,706
    161,524
    Municipal tax liabilities
    16,385
    16,385
    -
    -
    Impairment evaluation
    252,181
    285,854
    238,583
    204,910
    Offset of tax credits
    31,394
    200
    37,269
    68,463
    Financial obligations
    59,967
    9,176
    1,072
    51,863
    Investment valuation
    6,846
    6,846
    81
    81
    Foreclosed Assets
    118.894
    119,177
    283
    -
    Other deductions
    71.792
    37,179
    16,613
    51,226
    Total deferred tax asset
    729,250
    491,327
    321,297
    559,220
     
     
     
     
     
     
    December 31, 2016
    Realization
    Increase
    December 31, 2017
    In millions of COP
    Deferred tax liability:
     
     
     
     
    Premises and equipment
    (230,202)
    29,875
    33,223
    (233,550)
    Leasing re-expression
    (279,733)
    -
    175,877
    (455,610)
    Impairment evaluation
    (225,635)
    221,704
    2,481
    (6,412)
    Equity securities valuation
    (153,886)
    73,171
    40,495
    (121,210)
    Derivatives valuation
    (124,737)
    68,011
    -
    (56,726)
    Goodwill
    (587,094)
    20,434
    192,228
    (758,888)
    Foreclosed Assets
    (25,160)
    6,733
    29,082
    (47,509)
    Other deductions
    (138,235)
    63,114
    29,549
    (104,670)
    Total deferred tax liability
    (1,764,682)
    483,042
    502,935
    (1,784,575)
     
    Impact on Other Comprehensive Income
     
     
    December 31, 2016
    Realization
    Increase
    December 31, 2017
    In millions of COP
    Deferred tax asset
     
     
     
     
    Employee benefits
    28,624
     1,958
    10,084
    36,750
    Investment hedge in foreign operations
    -
    -
    6,895
    6,895
    Total deferred tax asset
    28,624
     1,958
    16,979
    43,645
     
     
     
     
     
     
    December 31, 2016
    Realization
    Increase
    December 31, 2017
    In millions of COP
    Deferred tax liability
     
     
     
     
    Employee benefits
    -
    150
    4,551
    (4,401)
    Debt securities valuation
    (39)
    39
    41
    (41)
    Investment valuation
     (95,645)
    6
    9,793
     (105,432)
    Total deferred tax liability
    (95,684)
    195
    14,385
    (109,874)
     
    In accordance with the financial projections, we expect to generate enough net income in the future to compensate for items registered as deductible deferred tax. These estimates are based on financial projections that were prepared taking into account the information of Grupo Bancolombia's economic research about the economic environment expected over the next five years. The main indicators on which the models are based are GDP growth, portfolio growth and interest rates. In addition to these elements, the company's long-term strategy is also taken into consideration.
     
    11.3.5.
    Future consequences of dividends from local subsidiaries
     
    According to the historical behavior of dividends and current tax regulations, they would not be taxed in the event that the Parent Company receives dividends from its local subsidiaries.
     
    11.3.6.
    Conciliation of the effective tax rate
     
    Conciliation of the tax rate
    December 31,
    2017
    December 31,
    2016
    December 31,
    2015
    In millions of COP
    Accounting earnings
    3,992,771
    3,968,282
    3,235,635
    Tax applicable to the nominal rate
    1,597,108
    1,587,313
    1,261,898
    Non-deductible expenses for determining taxable profit (loss)
    356,350
    255,435
    290,291
    Accounting and not fiscal expenses (income) for determining taxable profit (loss)
    (179,605)
    (217,056)
    (822,513)
    Differences in tax bases
    341,828
    (348,985)
    (149,502)
    Tax and not accounting expenses (income) for determining taxable profit (loss)
    (23,844)
    23,381
    352,543
    Revenues from ordinary activities exempt from taxation
    (181,406)
    (121,917)
    (172,466)
    Income from ordinary activities not constituting income or occasional earnings from taxation
    (130,272)
    (111,027)
    (66,459)
    Other fiscal deductions
    (184,620)
    (107,083)
    (168.970)
    Repayments on commercial credit
    (233,004)
    -
    -
    Surplus of tax depreciation
    (177,936)
    (20,323)
    (2,083)
    Foreign profits taxed at other rates
    (218,785)
    72,144
    99,398
    Other effects of the tax rate from reconciling accounting earnings and tax expenses (income)
    272,784
    164,950
    27,113
    Total Tax
    1,238,598
    1,176,832
    649,250
     
    Discontinued operations
     
     
    December 31, 2016
    December 31, 2015
    In millions of COP
    Earnings before taxes
    266,072
    21,446
    Total income and CREE taxes
    (2,961)
    21,635
    Total deferred tax
    (99,614)
    (22,702)
    Total tax
    (102,575)
    (1,067)
    Net profit of discontinued operations
    163,497
    22,513
     
    * For 2017 no operations were discontinued.
     
    11.4.
    Potential consequences on the payment of dividends
     
    If the Parent Company, or any of its subsidiaries, distributes dividends, these would be subject to the tax regulations of each of the countries where they are enacted.
     
    11.5.
    Tax contingent liabilities and assets
     
    Having analyzed the fiscal positions adopted in the declarations subject to review by the fiscal authority, Grupo Bancolombia believes it to be necessary to continue to recognize the uncertain position for the tax year of 2014 for the financial statements as of December 31, 2017.
     
    11.6.
    Fiscal credits
     
    The following is the detail of the Tax loss carryforward and excesses of presumptive income on net income in the group entities, which have not been used up to December 31, 2017.
     
    Base
    Tax deferred asset recognized
    In millions of COP
     207,395
    68,463
     
    11.7.
    Tax regulations applicable to current and deferred taxes for fiscal years 2015, 2016 and 2017.
     
    11.7.1.
    Companies domiciled in Colombia
     
    Current tax
     
    a)
    Starting from the tax year of 2017, current tax is calculated based on the accounting information provided under the framework of the technical accounting regulations currently in force in Colombia and established by Decree No. 2420 of 2015 and its subsequent amendments. Up until the tax year of 2016, current tax was calculated based on the accounting information prepared in accordance with the standards provided under Decree No. 2649 and 2650 of 1993, the technical standards established by the Financial Superintendence of Colombia; consequently, taxes are calculated using a combination of bases depending on the year of the transaction.
     
    b)
    Occasional earnings are handled separately from ordinary income and taxed at a rate of 10%.
     
    c)
    The basis for calculating ordinary income tax cannot be less than three point five percent (3.5%) of liquid assets on the last day of the previous fiscal year.
     
    Wealth tax
     
    In its statement of financial position, Grupo Bancolombia recognized the payment of the wealth tax contributions corresponding to the current tax year of 2017, in accordance with the Law No. 1739 of 2014.
     
    11.7.2.
    Companies domiciled in other countries
     
    Current tax is calculated based on the accounting information provided by the current technical accounting frameworks in each of the jurisdictions where Grupo Bancolombia operates.
     
    11.7.3.
    Deferred Tax
     
    Deferred tax as of December 31, 2017 was calculated based on the applicable fiscal regulations in every country where Grupo Bancolombia operates, using tax rates that apply to the tax years in which they expect to realize their assets and settle their liabilities.