Axactor Annual Report 2016

Note 6 Taxes Income tax calculation SEK thousand 2016 2015 Ordinary result before taxes 40,636 -204,757 Basis for income tax 40,636 -204,757 Income tax payable -8,940 45,047 Tax effect of change in net deferred income tax liability/asset - - Tax effect on permanent differences - -37,474 Effect on foreign exchange rates - - Utilization of tax losses, not recognized from previous years 8,940 - Tax losses for which no deferred tax asset was recognized - -7,573 Income tax expense - - Axactor AB has losses to be carried forward. The tax losses are not recognized as a deferred tax asset due to uncertainty relating to utilization in the Swedish tax regime. As per 31.12.2016 the most of the operating activity is outside Sweden, thus utilization through the group contribution may be limited. There is no time limit associated with the utilization of the losses. Note 7 Investments in subsidiaries Subsidiary company SEK thousand Share of owner- ship Share of voting rights Office location, city Office location, country Share capital in subsidiary Book value in parent company Result 2016 Equity 2016 CS Union S.p.A 90 % 90 % Cuneo Italy 27,274 104,483 7,317 33,370 Axactor Incentives AB 100 % 100 % Stockholm Sweden 50 50 - 50 Axactor Portfolio Holding AB 100 % 100 % Stockholm Sweden 50 432,889 -53,405 370,144 Axactor Platform Holding AB 100 % 100 % Stockholm Sweden 150 737,042 -36,109 699,907 Axactor AS 100 % 100 % Oslo Norway 99 18,884 -22,878 -5,742 Total investment in subsidiaries 27,623 1,293,347 -105,075 1,097,729 Axactor AB | Annual report 2016 69