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JOTUN GROUP
SPECIFICATION OF DEFERRED TAX
Deferred tax liability consists of the Group tax liabilities that are payable in the future. The table below lists the timing differences
between tax accounting and financial accounting.
TEMPORARY DIFFERENCES
(NOK THOUSAND) 2017 2016
Non-current assets 210 003 168 728
Current assets –117 263 –53 480
Liabilities –647 473 –536 197
Tax losses carried forward –52 850 –62 732
Net temporary differences –607 582 –483 682
NET DEFERRED TAX PRESENTED IN THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Recognised deferred tax liabilities –51 707 –27 828
Recognised deferred tax asset 247 560 219 768
SPECIFICATION OF TAX LOSS CARRY FORWARD AND UNUSED TAX CREDITS
(NOK THOUSAND) 2017 2016
2017 – 37 840
2018 48 759 49 719
2019 40 208 78 944
2020 80 909 73 612
2021 80 150 500 642
2022 and after 475 723 –
Without expiration 739 155 502 995
Total loss carry forward 1 464 905 1 243 751
Calculated nominal tax effect of tax loss carry forward 505 750 449 473
Valuation allowance 492 537 431 797
Deferred tax asset recognised in the statement of financial position 13 212 17 677
Jotun is involved in a number of tax cases related to various types of taxes. Jotun’s widespread business operations expose us to several
tax regimes and their interaction. To an increasing extent tax authorities are challenging transfer prices. Although Jotun currently has
no significant transfer price disputes with tax authorities, our value chain with a large number of internal transactions and business
operations covering multiple tax jurisdictions expose us to such disputes. This may potentially make us liable for material amounts of
taxes relating to previous years.
The final outcome of these cases is not expected until several years into the future, and is uncertain. Additional cases may be raised by
tax authorities based on tax declarations for periods not yet assessed. Jotun has provided for individual tax cases where the risk of loss is
considered above 50 per cent, included in Tax payable.
CONDOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(NOK THOUSAND) 2017 2016
Net (loss) / gain on translation difference on net investment in foreign operations 538 –5 854
Net (loss) / gain on actuarial gains and losses –4 369 –7 149
Income tax charged directly to comprehensive income –3 831 –13 003