21. Income taxes

The components of income tax expense for the years ended 31 December 2013, 2012 and 2011 were as follows:


  2013 2012 2011
Current income tax expense      
Income tax for the year (3,752) (7,705) (9,331)
Adjustments of the current income tax for previous years 101 201 (41)
Total current income tax for the year (3,651) (7,504) (9,372)
Deferred tax expense      
Origination and reversal of temporary differences (5,988) (5,219) (1,021)
Changes in unused tax losses 1,651 3,422 (266)
Total deferred income tax (4,337) (1,797) (1,287)
Total income tax expense for the year (7,988) (9,301) (10,659)

A reconciliation of the theoretical tax charge to the actual income tax charge is as follows:


  2013 2012 2011
Profit before tax 32,119 42,503 47 478
Statutory income tax rate 20% 20% 20%
Theoretical tax charge at statutory income tax rate (6,424) (8,501) (9,496)
Adjustments of the current income tax for previous years 101 201 (41)
Non–deductible expenses and non–taxable income (2,299) (1,838) (208)
Tax on intragroup dividend income (379) (634) (44)
Changes in unrecognized deferred tax assets 1,013 1,415 (1,000)
Tax exemptions 56 57
Other 73
Total actual income tax (7,988) (9,301) (10,659)
Effective tax rate, % 24,87% 21,88% 22,45%

Non–deductible expenses and non–taxable income comprised the following amounts for the year ended 31 December 2013, 2012 and 2011:


  2013 2012 2011
Effect of employee benefits curtailment 1,023
Effect of business combination achieved in several stages 388
Reversal/ (accrual) of impairment loss 665
Other (2,299) (1,838) (2,284)
Total non–deductible expenses and non–taxable income (2,299) (1,838) (208)

Other non–deductible expenses and non–taxable income include income connected with depreciation of certain property, plant and equipment, expenses within share–based employee motivation program, promotional and sponsorship expenditures, travel expenditures in excess of certain statutory allowances, other expenses and value added tax accrued on free–of–charge services.

The components of net deferred tax assets and liabilities as at 31 December 2013, 2012 and 2011, and the respective movements during 2013, 2012 and 2011 were as follows:


Movement during 2013 recognized in
  Balance as at 1 January 2013 Acquisition through business combinations Equity Other comprehensive income Profit / or loss for the yearReclassification to assets held for sale of mobileBalance as at 31 December  2013
               
Tax effects of future tax deductible items              
Property, plant and equipment 464 (5) (450) 9
Intangible assets 74 74
Unused tax losses 3,087 1,651 (3,124) 1,614
Trade and other accounts receivable 169 (124) (6) 39
Inventories 227 624 (44) 807
Investments 1,481 (1,051) (1) 429
Employee benefits 1,708 (371) 608 1,945
Loans and  borrowings 5 (5)
Other non–current liabilities 110 (110)
Accounts payable, provisions and accrued expenses 2,817 1,787 (153) 4,451
Other 639 1 130 (296) 474
Gross deferred tax asset 10,707 1 (371) 3,584 (4,079) 9,842
               
Tax effects of future taxable items:              
Property, plant and equipment (22,888) (1) (8,151) 854 (30,186)
Intangible assets (5,158) 265 1,807 (3,086)
Investments (855) 220 (635)
Accounts payable, provisions and accrued expenses (152) 106 28 (18)
Trade and other accounts receivable (1,544) (387) 24 (1,907)
Loans and borrowings (222) (54) 2 (274)
Other (273) (2) 80 7 (188)
Gross deferred tax liability (31,092) (3) (7,921) 2,722 (36,294)
Net deferred tax liability     (20,385) (2) (371) (4,337) (1,357) (26,452)

Movement during 2012 recognized in
  Balance as at 1 January 2012 Acquisition through business combinations Equity Other comprehensive income Profit / or loss for the yearBalance as at 31 December  2012
             
Tax effects of future tax deductible items            
Property, plant and equipment 535 (71) 464
Unused tax losses 384 2,703 3,087
Trade and other accounts receivable 246 5 (82) 169
Inventories 65 162 227
Investments 1,315 166 1,481
Employee benefits 1,793 (66) (19) 1,708
Loans and  borrowings 384 (379) 5
Other non–current liabilities 556 (446) 110
Accounts payable, provisions and accrued expenses 1,301 1,516 2,817
Other 363 9 267 639
Gross deferred tax asset 6,942 14 (66) 3,817 10,707
             
Tax effects of future taxable items:            
Property, plant and equipment (18,212) (36) 2 (4,642) (22,888)
Intangible assets (6 395) (5) 1,242 (5,158)
Investments (323) 683 146 (1,361) (855)
Accounts payable, provisions and accrued expenses (247) (31) 3 123 (152)
Trade and other accounts receivable (788) (756) (1,544)
Loans and borrowings (4) (218) (222)
Other (271) (2) (273)
Gross deferred tax liability (26,240) (72) 688 146 (5,614) (31,092)
Net deferred tax liability     (19,298) (58) 688 80 (1,797) (20,385)

Movement during 2011 recognized in
  Balance as at 1 January 2011 Acquisition through business combinations Equity Other comprehensive income Profit / or loss for the yearBalance as at 31 December  2011
             
Tax effects of future tax deductible items            
Property, plant and equipment 254 9 272 535
Unused tax losses 174 476 (266) 384
Trade and other accounts receivable 204 4 38 246
Inventories 5 1 59 65
Investments 786 1 528 1,315
Employee benefits 1,910 (166) 49 1,793
Loans and  borrowings 1,311 (927) 384
Other non–current liabilities 86 470 556
Accounts payable, provisions and accrued expenses 870 19 412 1,301
Other 792 30 (459) 363
Gross deferred tax asset 6,392 540 (166) 176 6,942
             
Tax effects of future taxable items:            
Property, plant and equipment (15,171) (788) (2,253) (18,212)
Intangible assets (3,497) (3,621)     723 (6,395)
Investments (628)   14 51 240 (323)
Accounts payable, provisions and accrued expenses (522) (55) 330 (247)
Trade and other accounts receivable (409) (3) (376) (788)
Loans and borrowings (13)   9 (4)
Other (129) (6) (136) (271)
Gross deferred tax liability (20,369) (4,473) 14 51 (1,463) (26,240)
Net deferred tax liability     (13,977) (3,933) 14 (115) (1,287) (19,298)

In 2013 the Group recalculated income tax for prior periods related to the deductibility for tax purposes of accelerated tax depreciation of property, plant and equipment operated in an aggressive environment. As a result adjusted tax declarations were submitted to the tax authorities and income tax overprovided in prior periods was recognised. Accordingly the tax value of property, plant and equipment was decreased, which resulted in an increase of deferred tax liabilities.

Taxable temporary differences associated with investments in subsidiaries for which no deferred tax liabilities were recognized in the accompanying consolidated statements of financial position as at 31 December 2013, 2012 and 2011 amounted to 4,902, 19,293 and 24,933, respectively. Deductible temporary differences associated with investments in subsidiaries for which no deferred tax assets were recognized in the accompanying consolidated statements of financial position as at 31 December 2013, 2012 and 2011 amounted to 2,759, 3,606 and 12,987, respectively.

Deductible temporary differences for which no deferred tax assets were recognized in the accompanying consolidated statements of financial position as at 31 December 2013, 2012 and 2011 amounted to 1,836, 9,022 and 16,095, respectively, of which unused tax losses with expiry date from 2014 to 2022 amounted to 190, 6,480 and 14,847 for 2013, 2012 and 2011, respectively.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and the deferred income tax assets and deferred income tax liabilities relate to the income taxes levied by the same fiscal authority on the same taxable entity.

The consolidated statement of comprehensive income for 2013, 2012 and 2011 includes tax expense in respect of following items of other comprehensive income:


2013 2012 2011
Change in fair value of available–for–sale financial assets (66) 51
Actuarial gains and losses (371)             146  (166)