Euronav NV | CIK:0001604481 | 3

  • Filed: 4/17/2018
  • Entity registrant name: Euronav NV (CIK: 0001604481)
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    • ifrs-full:DisclosureOfIncomeTaxExplanatory

    Income tax benefit (expense)
    (in thousands of USD)
     
    2017
     
    2016
     
    2015
    Current tax
     
     
     
     
     
     
    Current period
     
    (85
    )
     
    60

     
    (98
    )
    Total current tax
     
    (85
    )
     
    60

     
    (98
    )
     
     
     
     
     
     
     
    Deferred tax
     
     
     
     
     
     
    Recognition of unused tax losses/(use of tax losses)
     
    1,473

     
    220

     
    (5,450
    )
    Other
     
    (30
    )
     
    (106
    )
     
    (85
    )
    Total deferred tax
     
    1,443

     
    114

     
    (5,535
    )
     
     
     
     
     
     
     
    Total tax benefit/(expense)
     
    1,358

     
    174

     
    (5,633
    )

    Reconciliation of effective tax
     
    2017
     
    2016
     
    2015
    Profit (loss) before tax
     
     
     
    25

     
     
     
    203,875

     
     
     
    355,934

     
     
     
     
     
     
     
     
     
     
     
     
     
    Tax at domestic rate
     
    (33.99
    )%
     
    (8
    )
     
    (33.99
    )%
     
    (69,297
    )
     
    (33.99
    )%
     
    (120,982
    )
    Effects on tax of :
     
     
     
     
     
     
     
     
     
     
     
     
    Tax exempt profit / loss
     
     
     
    499

     
     
     
    (8,090
    )
     
     
     
    (144
    )
    Tax adjustments for previous years
     
     
     
    10

     
     
     
    70

     
     
     
    17

    Loss for which no DTA (*) has been recognized
     
     
     
    —

     
     
     
    —

     
     
     
    (4,811
    )
    Use of previously unrecognized tax losses
     
     
     
    7,146

     
     
     
    1,118

     
     
     
    15,668

    Non-deductible expenses
     
     
     
    (710
    )
     
     
     
    (1,718
    )
     
     
     
    (5,225
    )
    Tonnage Tax regime
     
     
     
    (13,918
    )
     
     
     
    64,637

     
     
     
    91,334

    Effect of share of profit of equity-accounted investees
     
     
     
    10,175

     
     
     
    13,761

     
     
     
    17,536

    Effects of tax regimes in foreign jurisdictions
     
     
     
    (1,836
    )
     
     
     
    (307
    )
     
     
     
    974

    Total taxes
     
    5,430.01
     %
     
    1,358

     
    0.09
     %
     
    174

     
    (1.58
    )%
     
    (5,633
    )

    In application of an IFRIC agenda decision on 'IAS 12 Income taxes', tonnage tax is not accounted for as income taxes in accordance with IAS 12 and is not presented as part of income tax expense in the consolidated statement of profit or loss but has been shown as an administrative expense under the heading General and administrative expenses. The amount paid for tonnage tax in the year ended December 31, 2017 was USD 4.8 million (see Note 5).
    * Deferred Tax Asset
    Deferred tax assets and liabilities
    Recognized deferred tax assets and liabilities
    Deferred tax assets and liabilities are attributable to the following:
    (in thousands of USD)
     
    ASSETS

     
    LIABILITIES

     
    NET

    Provisions
     
    31

     
    —

     
    31

    Employee benefits
     
    37

     
    —

     
    37

    Unused tax losses & tax credits
     
    896

     
    —

     
    896

     
     
    964

     
    —

     
    964

    Offset
     
    —

     
    —

     
     

    Balance at December 31, 2016
     
    964

     
    —

     
     

     
     
     
     
     
     
     
    Provisions
     
    1

     
    —

     
    1

    Employee benefits
     
    44

     
    —

     
    44

    Unused tax losses & tax credits
     
    2,442

     
    —

     
    2,442

     
     
    2,487

     
    —

     
    2,487

    Offset
     
    —

     
    —

     
     
    Balance at December 31, 2017
     
    2,487

     
    —

     
     

    Unrecognized deferred tax assets and liabilities
    Deferred tax assets and liabilities have not been recognized in respect of the following items:
    (in thousands of USD)
     
    December 31, 2017
     
    December 31, 2016
     
     
    ASSETS

     
    LIABILITIES

     
    ASSETS

     
    LIABILITIES

    Deductible temporary differences
     
    357

     
    —

     
    280

     
    —

    Taxable temporary differences
     
    7

     
    (14,231
    )
     
    7

     
    (25,213
    )
    Tax losses & tax credits
     
    89,528

     
    —

     
    105,731

     
    —

     
     
    89,892

     
    (14,231
    )
     
    106,018

     
    (25,213
    )
    Offset
     
    (14,231
    )
     
    14,231

     
    (25,213
    )
     
    25,213

    Total
     
    75,661

     
    —

     
    80,805

     
    —


    The unrecognized deferred tax assets in respect of tax losses and tax credits are related to tax losses carried forward, investment deduction allowances and excess dividend received deduction. Tax losses and tax credits have no expiration date.
    A deferred tax asset is recognized for unused tax losses and tax credits carried forward, to the extent that it is probable that future taxable profits will be available. The Group considers future taxable profits as probable when it is more likely than not that taxable profits will be generated in the foreseeable future. When determining whether probable future taxable profits are available the probability threshold is applied to portions of the total amount of unused tax losses or tax credits, rather than the entire amount.
    Given the nature of the tonnage tax regime, the Group has a substantial amount of unused tax losses and tax credits for which no future taxable profits are probable and therefore no deferred tax asset has been recognized.
    The unrecognized tax liabilities in respect of taxable temporary differences relate primarily to tax liabilities in respect of non distributed reserves of the Group that will be taxed when distributed. No deferred tax liability has been recognized because the Group controls whether the tax liability will be incurred and management is satisfied that the tax liability will not be incurred in the foreseeable future. In addition, no deferred tax liabilities have been recognized for temporary differences related to vessels for which the Group expects that the reversal of these differences will not have a tax effect.
    In December 2017, changes to the Belgian corporate income tax rate were enacted, lowering the rate to 29.58% as from 2018 and to 25% from 2020. These changes have been reflected in the calculation of the amounts of deferred tax assets and liabilities in respect of Belgian Group entities as at December 31, 2017.

    Movement in deferred tax balances during the year
    (in thousands of USD)
     
    Balance at Jan 1, 2015

     
    Recognized in income

     
    Recognized in equity

     
    Translation differences

     
    Balance at Dec 31, 2015

    Provisions
     
    238

     
    (61
    )
     
    —

     
    (8
    )
     
    169

    Employee benefits
     
    52

     
    (24
    )
     
    —

     
    (5
    )
     
    23

    Unused tax losses & tax credits
     
    6,246

     
    (5,450
    )
     
    —

     
    (53
    )
     
    743

    Total
     
    6,536

     
    (5,535
    )
     
    —

     
    (66
    )
     
    935

     
     
     
     
     
     
     
     
     
     
     
     
     
    Balance at Jan 1, 2016

     
    Recognized in income

     
    Recognized in equity

     
    Translation differences

     
    Balance at Dec 31, 2016

    Provisions
     
    169

     
    (121
    )
     
    —

     
    (17
    )
     
    31

    Employee benefits
     
    23

     
    15

     
    —

     
    (1
    )
     
    37

    Unused tax losses & tax credits
     
    743

     
    220

     
    —

     
    (67
    )
     
    896

    Total
     
    935

     
    114

     
    —

     
    (85
    )
     
    964

     
     
     
     
     
     
     
     
     
     
     
     
     
    Balance at Jan 1, 2017

     
    Recognized in income

     
    Recognized in equity

     
    Translation differences

     
    Balance at Dec 31, 2017

    Provisions
     
    31

     
    (32
    )
     
    —

     
    2

     
    1

    Employee benefits
     
    37

     
    2

     
    —

     
    5

     
    44

    Unused tax losses & tax credits
     
    896

     
    1,473

     
    —

     
    73

     
    2,442

    Total
     
    964

     
    1,443

     
    —

     
    80

     
    2,487