| 18. | Deferred tax assets and liabilities |
Recognized deferred tax assets and liabilities
Deferred tax assets and liabilities at 31 December 2017 and 2016 are attributable to the following:
| Assets | Liabilities | Net | ||||||||||||||||||||||
| 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||
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Property, plant and equipment and intangible assets |
41,903 | 3,516 | (680,134 | ) | (532,547 | ) | (638,231 | ) | (529,031 | ) | ||||||||||||||
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Investment |
32,926 | 33,242 | — | — | 32,926 | 33,242 | ||||||||||||||||||
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Reserve for employee termination benefits and provisions (*) |
202,112 | 55,288 | (64 | ) | — | 202,048 | 55,288 | |||||||||||||||||
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Asset classified as held for sale |
— | — | (92,327 | ) | (90,209 | ) | (92,327 | ) | (90,209 | ) | ||||||||||||||
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Trade and other payables |
11,717 | 57,686 | (26,091 | ) | — | (14,374 | ) | 57,686 | ||||||||||||||||
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Tax losses carried forward |
— | 1,508 | — | 1,508 | ||||||||||||||||||||
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Tax allowances |
10,775 | 32,200 | — | — | 10,775 | 32,200 | ||||||||||||||||||
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Other assets and liabilities |
31,916 | 65,905 | (87,795 | ) | (33,494 | ) | (55,879 | ) | 32,411 | |||||||||||||||
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Deferred tax assets/(liabilities) |
331,349 | 249,345 | (886,411 | ) | (656,250 | ) | (555,062 | ) | (406,905 | ) | ||||||||||||||
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Offsetting |
(235,289 | ) | (198,090 | ) | 235,289 | 198,090 | — | — | ||||||||||||||||
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Net deferred tax assets/ (liabilities) |
96,060 | 51,255 | (651,122 | ) | (458,160 | ) | (555,062 | ) | (406,905 | ) | ||||||||||||||
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| (*) | The Company has treated provisions recognized for legal claims (Note 36) as being deductible for tax purposes and recognized deferred tax assets amounting to TL 74,975 in the consolidated financial statements. |
Movement in deferred tax assets/(liabilities) for the years ended 31 December 2017 and 2016 were as follows:
| 2017 | 2016 | |||||||
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Opening balance |
(406,905 | ) | (64,822 | ) | ||||
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Income statement charge |
(133,791 | ) | (222,497 | ) | ||||
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Tax charge relating to components of other comprehensive income |
(6,449 | ) | (7,066 | ) | ||||
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Prior year corporate tax base differences |
(2,729 | ) | (109,640 | ) | ||||
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Exchange differences |
(5,188 | ) | (2,880 | ) | ||||
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Closing balance, net |
(555,062 | ) | (406,905 | ) | ||||
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The Group did not recognise deferred income tax assets of TL 502,523 in respect of tax losses amounting to TL 2,698,248 that can be carried forward against future taxable income. The unused tax losses were mainly incurred by lifecell and Belarusian Telecom that are not likely to generate taxable income in the foreseeable future.
Unused tax losses will expire at the following dates:
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Expiration Date |
Amount | |||
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2018 |
8,911 | |||
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2019 |
9,394 | |||
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2020 |
8,775 | |||
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2021 |
4,467 | |||
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2022 |
3,506 | |||
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2023 |
281 | |||
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2024 |
128,314 | |||
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2025 |
803,533 | |||
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Indefinite |
1,731,067 | |||
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Total |
2,698,248 | |||
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