| Income tax | 1 January - 31 December 2013 | 1 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 tax | 1 January - 31 December 2013 | 1 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.
