Note 9 Taxes

             
Group            
Distribution of tax expense (SEK million)         2008 2007
Current tax            
Current tax expense         -637 -559
Adjustment for prior years         22 -1
Total         -615 -560
             
Deferred tax            
Temporary differences         -68 -28
Total         -68 -28
             
Total income tax expense in income statement         -683 -588
             
Reconciliation of tax expense (SEK million)     2008 % 2007 %
Tax/Tax rate in Sweden     -1,012 -28.0 -564 -28.0
Non-taxable income     338 9.4 7 0.3
Foreign tax rate differential     80 2.2 -11 -0.5
Effect of losses carry-forward     - - 18 0.9
Non-deductible amortisation of goodwill     -21 -0.6 -13 -0.6
Non-deductible write-down of beneficial rights     - - -4 -0.2
Non-deductible expenses     -71 -2.0 -17 -0.8
Losses where no tax benefit was Recognised     -25 -0.7 0 0.0
Revalued tax losses carry-forward     - - 2 0.1
Other permanent effects     6 0.2 -6 -0.3
Under/over provided in prior years     22 0.6 -1 0.0
Effective tax/tax rate     -683 -18.9 -588 -29.2
             
(SEK million)         31 December 2008 31 December 2007
Deferred tax asset            
Goodwill         -14 -49
Equipment         1 4
Beneficial rights         15 12
Provisions         2 5
Inventory         4 1
Non-current receivables         32 -
Current receivables         5 10
Current liabilities         9 1
Tax value of losses carry-forward recognised         101 38
Total         156 23
             
Deferred tax liabilities            
Trademarks         232 156
Goodwill         162 -
Equipment         -2 1
Current receivables         5 -
Current liabilities         3 1
Other         3 -
Total         403 159
             
Deferred tax net         -247 -135
The movement in temporary differences net is explained below:
  2008
(SEK million) Opening balance 1 January Deferred tax expense Acquisition of subsidiary Charged to equity Translation differences Closing balance 31 December
Tax losses carryforward 38 63       101
             
Temporary differences in:            
Goodwill -49 -127       -176
Equipment 3 0       4
Intangible assets -144 4 -66   -10 -217
Provisions 5 -3       2
Inventory 1 3       4
Non-current long-term receivables       32   32
Current short term receivables 10 -10       0
Current short term liabilities 1 5       6
Other   -3       -3
Total -135 -68 -66 32 -10 -247
             
  2007
(SEK million) Opening balance 1 January Deferred tax expense Acquisition of subsidiary Charged to equity Translation differences Closing balance 31 December
Tax losses carryforward 39 -1       38
             
Temporary differences in:            
Goodwill -37 -12       -49
Equipment 14 -11       3
Intangible assets -101 -9 -31   -4 -144
Provisions 4 1       5
Inventory 2 -1       1
Current short term receivables 8 2       10
Current short term liabilities -2 3       1
Total -72 -28 -31 0 -4 -135
             
The Group had recognised losses carry-forward without expiration date of SEK 378 (83) million at 31 December, 2008. The accounts for 2008 and 2007 include deferred tax assets as a tax value of the losses carry-forward in all countries where it is judged likely that the Group will be able to apply its losses carry-forward to a taxable surplus. As a consequence, deferred tax assets are not reported in some countries.
Unrecognised tax losses carry-forward by expiry date (SEK million)         2008 2007
2008         - 1
2009         0 0
2010         0 0
2011         20 22
2012         20 27
2013 and thereafter         11 -
No expiry date         20 24
Total         71 74
Parent company
The tax loss carry forward of SEK 87 million recognised in the accounts of 2008 correspond to the tax rate of 26.3%. The tax loss carry forward is without expiration date.
Distribution of tax expenses (SEK million)         2008 2007
Current tax relating to Group contributions         -76 51
Current tax payable         - -95
Adjustment for prior years         2 -
Temporary differences         -50 -
Tax losses carry forward         87 -
Total tax         -36 -45
             
(SEK million)         31 December 2008 31 December 2007
Deferred tax asset         87 -
Total         87 -
             
Reconciliation of tax expense (SEK million)     2008 % 2007 %
Tax/Tax rate in Sweden     -8 -28.0 -1,756 -28.0
Non-deductible expenses     -2 -8.4 -7 -0.1
Non-taxable income     - - 1,713 27.3
Adjustment for prior years     2 7.3 - -
Other permanent effects     -28 -101.6 5 0.1
Effective tax/tax rate     -36 -130.7 -45 -0.7

Modern Times Group MTG AB Box 2094 SE-103 13 Stockholm Sweden Visiting: Skeppsbron 18 Tel: +46 8 562 000 50