Tax expense

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					Note 10 Tax

Tax expense

           Hafslund ASA                                                            Group
   2002       2003     2004    Amounts in NOK million                       2004      2003    2002
     82         -61     -286   Distribution of pre-tax profit Norway         697        288    -246
                               Distribution of pre-tax profit abroad          -2        -28      -8
      82       -61     -286    Pre-tax ordinary profit                       695       260    -254
      35         2             Norway – taxes payable                        125        177      72
                               Abroad – taxes payable                                    24      -5
      35          2            Total taxes payable                          125        201       67
     -16        -13      -85   Norway – change in deferred tax              215        -133    -478
                               Abroad – change in deferred tax               -1         -37       3
     -16       -13      -85    Total change in deferred tax                 214       -170    -475
                               RISK effect on liquidation of subsidiaries                       216
                               Amortization of interest goodwill              17        17       17
                               Other effects, net                            -15         9
                               Total other tax effects                         2        26     233
      19       -11      -85    Tax expense                                  341         57    -175
Note 10 Tax

Deferred tax — deferred tax benefit

 31 Dec.   31 Dec.   31 Dec.                                                       31 Dec.   31 Dec.
   2002      2003      2004    Amounts in NOK million                                2004      2003
     -56       -17         4   Temporary differences                                   -54       292
       5         9        15   Fixed assets                                          2,485     2,016
      71        74        89   Over-funded pension plans                                91        92
     -39       -40       -72   Accrued pension liabilities                             -39      -139
                        -315   Accumulated carry forward loss                       -2,230    -1,895
     -19       26      -279    Total basis for deferred tax/deferred tax benefit      253       366
                7              Deferred tax in balance sheet                             1      168
       5                 78    Deferred tax benefit in balance sheet                    72        65
31 Dec.
  2002
    316
  2,012
    160
   -268
 -1,530
   690
   194
     26
Note 10 Tax

Expiration dates for carryforward losses
(amounts in NOK million)
                                       31 Dec. 2004    31 Dec. 2003
Expire in two years                                2
Expire in four years                                              2
Expire in five years                               3
Expire in six or more years                    2,225         1,893
Total carryforward losses                     2,230          1,895
Note 10 Tax

Specification of tax expense
(amounts in NOK million)
                                                              2004      2003      2002
Change in deferred tax on temporary differences 1)             214        -91      -200
Off-balance-sheet tax assets recorded to income                           -52      -264
Adjustment in deferred tax opening balance                                 29       -11
Deferred tax on acquisitions                                              -56
Total change in deferred tax                                   214      -170       -475
Tax payable                                                    125       201         67
RISK effect, liquidation of subsidiaries                                            216
Write-off of interest goodwill                                   17        17        17
Other effects, net                                              -15         9
Total tax expense                                              341         57      -175

1) Change in deferred tax is affected by a NOK 246 million accrual in 2002 and 2003
associated with the reorganization of Hafslund Nett AS. The accrual is recorded in the
balance sheet under Other receivables in both of the aforementioned accounting years.
Note 10 Tax


Reconciliation of nominal tax rate and effective tax rate

Amounts in NOK million                                            2004   2003    2002
Pre-tax profit                                                     695    260     -254
Expected tax expense applying nominal 28% tax rate                 194      73     -71
Losses and other tax benefits not previously recorded to income            -52    -264
RISK and share divestitures                                         -7     -36      49
Economic rent tax                                                  105    101       54
Interest goodwill                                                   17      17      17
Dividend effect                                                     12     -23     -14
Profit from associated companies                                    -9     -12     -11
Group effects                                                       15     -14
Non-deductible costs and amortized goodwill                         19       3      33
Other issues, net                                                   -5              32
Tax expense                                                        341     57     -175
Effective tax rate (in %)                                         49%    22%     -69%