Asset Buyout Partners Annual Report 2020

Note 19 Income tax and deferred tax Income tax Figures in NOK 2020 2019 Tax payable, current year -39 970 643 -31 825 529 Tax payable, change in prior year -1 084 298 - Change in deferred tax -136 298 451 -181 037 586 Income tax expense -177 353 392 -212 863 115 Profit/loss before income tax 813 294 668 953 065 956 Income tax expense calculated at 22% -178 924 827 -209 674 510 Changes relating to prior years 1 656 942 -813 579 Changes in deferred tax not recognized at intital recognition - - Expenses not deductible for tax purposes -85 507 -145 068 Changes in recognized value of acquired tax losses - -2 229 958 Effect of changes in tax rates - - Income tax expense -177 353 392 -212 863 115 Deferred tax liabilities Figures in NOK Loss carried forward Financial derivative instruments Investment property Other items Total 01.01.2019 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 Deferred tax as of 31.12.2019 - 364 258 -471 091 258 -12 540 109 -483 267 111 Changes in deferred tax recognized in income statement - 26 326 634 -163 886 958 1 261 874 -136 298 451 Deferred tax as of 31.12.2020 - 26 690 892 -634 978 216 -11 278 235 -619 565 561 Movement in deferred tax liabilities Figures in NOK 2020 2019 01.01. -483 267 110 -299 379 309 Changes not recognized in income statement (mainly acquired tax losses) - -2 850 216 Changes in deferred tax recognized in income statement -136 298 451 -181 037 586 31.12. -619 565 561 -483 267 110 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 combination 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 (31.12.19: NOK 761.3 million) relating to a difference between the initial carrying amount and tax base of investment properties. Asset Buyout Partners | Annual Report 2020 41