11. Tax expense

 2014

2013
(restated data) 

Tax expense in the statement of profit or loss    
Current tax expense (196) (86)
Deferred tax 614 19
  418 (67)
Deferred tax recognized in other comprehensive income    
Hedging instruments 334 (49)
Fair value measurement of investment property as at the date of reclassification  -  3
Actuarial gains and losses 4 (1)
  338 (47)
  756 (114)

 

11.1 The differences between tax expense recognized in profit or loss and the amount calculated based on the rate from profit/(loss) before tax

20142013 (restated data) 
Profit/(Loss) before tax  (6 246) 157
Corporate tax expense for 2014 and 2013 by the valid tax rate (19% in Poland)  1 187  (30)
Differences between tax rates (182) (34)
Lithuania (15%) (184) (20)
Germany (29%) (13) (14)
Canada (25%) 15  - 
Impairment allowances of non-current assets (896)  - 
Effect of changes in tax losses for which no deferred tax asset was recognised 250 (63)
Valuation of entities accounted for under equity method 11 8
Other 48 52
Tax expense 418 (67)
Effective tax rate 7% 43%
 

In 2014 the Group did not recognize the deferred tax asset on an impairment allowances recognized on assets of companies from ORLEN Lietuva Group, the Unipetrol Group and the Anwil Group due to the lack of certainly of their realization.

As at 31 December 2014 and as at 31 December 2013, the Group had unsettled tax losses mainly relating to the ORLEN Lietuva Group, the Unipetrol Group and the Anwil Group of PLN 2,095 million and PLN 601 million respectively, for which no deferred tax asset was recognized due to to the lack of certainty regarding the possibility of their realization in the future.

11.2 Deferred tax

  31/12/2013
(restated data)
Deferred tax recognized in statement of profit or lossDeferred tax recognized in other comprehensive income Acquisition of subsidiary Foreign exchange differences on subsidiaries from consolidation recognized in other comprehensive income 31/12/2014
Deferred tax assets            
Impairment allowances 279 79  -   -  1 359
Provisions and accruals 318 (25)  -  4 1 298
Unrealized foreign exchange differences 29 182  -   -  (155) 56
Difference between carrying amount and tax base of non-current assets 42 (20)  -   -   -  22
Tax loss 362 74  -   -  2 438
Valuation of financial instruments  -  (10) 307  -   -  297
Other 47 (11) 4  -  2 42
   1 077  269 311 4 (149)  1 512 
Deferred tax liabilities            
Investment relief 70 (3)  -   -  (14) 53
Difference between carrying amount and tax base of non-current assets  1 278  (337)  -  121 6  1 068 
Surplus of contribution in kind over the values of shares 43  -   -   -   -  43
Valuation of financial instruments 32 (5) (27)  -   -   - 
Other 41  -   -   -  (3) 38
   1 464  (345) (27) 121 (11)  1 202 
  (387) 614 338 (117) (138) 310
 

The above positions of deferred tax assets and liabilities are netted on the level of particular financial statements of the Group companies for presentation purposes in the consolidated financial statement of the ORLEN Group. As at 31 December 2014 deferred tax assets and liabilities amounted to PLN 385 million and PLN 75 million, respectively.