Asset Buyout Partners Annual Report 2019

Note 19 Income tax and deferred tax Income tax Figures in NOK 2019 2018 Tax payable -31 825 529 -9 851 087 Change in deferred tax -181 037 586 -245 240 122 Income tax expense -212 863 115 -255 091 209 Profit/loss before income tax 953 065 956 1 141 789 180 Income tax expense calculated at 22% / 23% 209 674 510 262 611 511 Changes relating to prior years 813 579 - Changes in deferred tax not recognized at intital recognition - 2 134 727 Expenses not deductible for tax purposes 145 068 61 618 Changes in recognized value of acquired tax losses 2 229 958 3 891 504 Effect of changes in tax rates - -13 608 150 Income tax expense 212 863 115 255 091 209 Deferred tax liabilities Figures in NOK Loss carried forward Financial derivative instruments Investment property Other items Total 01.01.2018 10 572 095 304 638 -55 607 181 -876 258 -45 606 706 Change related to new acquisitions -8 532 000 - - - -8 532 000 Changes in deferred tax recognized in income statement -1 968 261 249 265 -243 958 236 -13 171 520 -258 848 752 Effect of changed tax rate -3 123 -24 083 13 024 583 610 773 13 608 150 Deferred tax as of 31.12.2018 68 711 529 820 -286 540 833 -13 437 005 -299 379 309 Change related to new acquisitions -2 850 216 -2 850 216 Changes in deferred tax recognized in income statement -68 711 -165 563 -184 550 425 3 747 112 -181 037 586 Effect of changed tax rate - Deferred tax as of 31.12.2019 - 364 258 -471 091 258 -12 540 109 -483 267 110 Movement in deferred tax liabilities Figures in NOK 2019 2018 01.01. -299 379 309 -45 606 707 Changes not recognized in income statement (mainly acquired tax losses) -2 850 216 -8 532 000 Changes in deferred tax recognized in income statement -181 037 586 -245 240 602 31.12. -483 267 110 -299 379 309 According to IFRS a deferred tax liability is not recognized on initial recognition of an asset or liability in a transaction that is not a business com- bination and at the time of the transaction, affects neither accounting profit nor taxable profit. The exception is generally referred to as the “initial recognition exception”. The acquisition of investment properties through single purpose entities that are not viewed as business combinations fall under the initial recognition exception. As a consequence, deferred tax liability of NOK 761.3 million was not recognized at the balance sheet date (31.12.18: NOK 690.9 million) relating to a difference between the initial carrying amount and tax base of investment properties. Asset Buyout Partners | Annual Report 2019 41