| 2014 |
2013 | |
|---|---|---|
| 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
| 2014 | 2013 (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 loss | Deferred 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.