Note 9 Taxes

Group            
Distribution of tax expense (SEK million)         2009 2008
Current tax            
Current tax expense         -375 -637
Adjustment for prior years         35 22
Total         -341 -615
             
Deferred tax            
Temporary differences         -42 -68
Total         -42 -68
             
Total income tax expense in income statement         -383 -683
             
Reconciliation of tax expense (SEK million)     2009 % 2008 %
Tax/Tax rate in Sweden     430 26.3 -1,012 -28.0
Non-taxable income     202 12.4 338 9.4
Foreign tax rate differential     -40 -2.5 80 2.2
Effect of losses carry-forward not previously recognised     19 1.2 - -
Non-deductible write-down of goodwill     -859 -52.5 -21 -0.6
Non-deductible amortisation and write-down of beneficial rights     -11 -0.7 - -
Non-deductible expenses     -148 -9.0 -71 -2.0
Losses where no deferred tax was recognised     -27 -1.7 -25 -0.7
Revalued tax losses carry-forward     0 0.0 - -
Other permanent effects     15 0.9 6 0.2
Under/over provided in prior years     35 2.1 22 0.6
Effective tax/tax rate     -383 -23.4 -683 -18.9
             
Tax related to other comprehensive income (SEK million) Gross 2009 Tax 2009 Net of tax 2009 Gross 2008 Tax 2008 Net of tax 2008
Change in currency translation differences -869 -14 -883 1,599 -65 1,533
Cash flow hedge -13   -13 31   31
Revaluation of shares at market value 8   8 -5   -5
Other       5   5
Other comprehensive income related to associates 45   45 -   -
Total other comprehensive income -829 -14 -843 1,630 -65 1,564
             
(SEK million)         31 December 2009 31 December 2008
Deferred tax asset            
Goodwill         - -14
Equipment         11 1
Beneficial rights         10 15
Provisions         6 2
Inventory         1 4
Non-current receivables         - 32
Current receivables         1 5
Current liabilities         17 9
Tax value of losses carry-forward recognised         73 101
Total         119 156
             
Deferred tax liabilities            
Trademarks         225 232
Goodwill         176 162
Equipment         - -2
Current receivables         - 5
Current liabilities         - 3
Other         5 3
Total         406 403
             
Deferred tax net         -287 -247
The movements in temporary differences net are explained below:
  2009
(SEK million) Opening balance 1 January Deferred tax expense Acquisition of subsidiary Other comprehensive income Translation differences Closing balance 31 December
Tax losses carryforward 101 -27       73
             
Temporary differences in:            
Goodwill -176         -176
Equipment 4 7       11
Intangible assets -217 -1     2 -216
Provisions 2 4       6
Inventory 4 -3       1
Non-current receivables 32 -36       -4
Current receivables 0 1       1
Current liabilities 6 11       17
Other -3 2       -1
Total -247 -42 0 0 2 -287
             
  2008
(SEK million) Opening balance 1 January Deferred tax expense Acquisition of subsidiary Other comprehensive income 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 receivables       32   32
Current receivables 10 -10       0
Current liabilities 1 5       6
Other   -3       -3
Total -135 -68 -66 32 -10 -247
             
The Group had recognised losses carry-forward without expiration date of SEK 279 (378) million at 31 December 2009. The accounts for 2009 and 2008 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 recognised in some countries.
Unrecognised tax losses carry-forward by expiry date (SEK million)         2009 2008
2009         - 0
2010         - 0
2011         16 20
2012         34 20
2013         3 11
2014 and thereafter         - -
No expiry date         86 20
Total         140 71
Parent company
The tax loss carry forward of SEK 43 (87) million recognised in the accounts of 2009 correspond to the tax rate of 26.3%. The tax loss carry forward is without expiration date.
Distribution of tax expenses (SEK million)         2009 2008
Current tax relating to Group contributions         69 -76
Adjustment for prior years         - 2
Deferred tax         -32 37
Total tax         37 -36
             
(SEK million)         31 December 2009 31 December 2008
Deferred tax asset (tax loss carry forwards)         43 87
Total         43 87
             
Reconciliation of tax expense (SEK million)     2009 % 2008 %
Tax/Tax rate in Sweden     -291 -26.3 -8 -28.0
Non-deductible expenses     -21 -1.9 -2 -8.4
Non-taxable income     343 31.0 - -
Adjustment for prior years     - - 2 7.3
Other permanent effects     6 0.5 -28 -101.6
Effective tax/tax rate     37 3.4 -36 -130.7

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

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