47. Income tax

Income tax1 January - 31 December 20131 January - 31 December 2012
Gross profit (loss) (consolidated) 4 120 692 4 038 708
CIT rate (or range of rates) for the country of the registered office of the parent (%) 19% 19%
Income tax which would be calculated as the product of the gross book profit of the entities and the CIT rate for the country of the registered office of the parent 782 931 767 355
Differences between the income tax calculated above and the income tax recognized in the income statement: 42 648 17 527
 - tax losses (874) (3 066)
 - fines, contractual penalties 1 678 796
 - dividends (4 025) (19 806)
 - measurement of financial assets (17 362) 7 628
 - created/released write-downs on receivables not classified as tax deductible expenses 4 137 30 628
 - other created/ released provisions and write-downs on other assets not classified as tax deductible expenses 51 401 (9 115)
 - unrealized gains and losses on outward reinsurance (4 033) (1 266)
 - tax on insurance activities in Ukraine 4 585 4 673
 - amortization 448 602
 - other tax increase, cancellation, exemption, deduction and reduction 6 693 6 453
Income tax recognized in the profit or loss 825 579 784 882

Total current and deferred tax1 January - 31 December 20131 January - 31 December 2012
1. Recognized in profit or loss, including: 825 579 784 882
    - current tax 885 776 568 541
    - deferred tax (60 197) 216 341
2. Recognized in other comprehensive income, including: (39 617) 26 002
    - current tax - -
    - deferred tax (39 617) 26 002

Regulations concerning corporate income tax, personal income tax, value added tax and contributions to social security undergo frequent changes. Valid regulations contain unclear issues which result in a difference in opinions regarding legal interpretation of these regulations, both among competent authorities as well as between these authorities and enterprises. Tax and other settlements (e.g. regarding customs duty or foreign currency settlements) may be controlled by authorities competent to levy high penalties, and additional liability amounts assessed during control bear high interest. As a result, the tax risk in Poland, Lithuania and Ukraine exceeds the level characteristic of countries with better developed tax systems. In Poland tax returns are subject to control over a period of five years. Consequently, the amounts presented in these consolidated financial statements may change at a later date, after they have been finally assessed by tax authorities.