Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

8. Deferred Taxes

v3.19.1
8. Deferred Taxes
12 Months Ended
Dec. 31, 2018
Deferred Taxes  
Deferred Taxes

Note 8 — Deferred Taxes

 

The amount of unused tax losses for which no deferred tax assets are recognized in the consolidated statements of financial position as of December 31, 2018, 2017 and 2016 was $83,175, $41,632 and $542,357, respectively, with no expiration date limitation.

 

Deferred tax is calculated in full on temporary differences using a tax rate of 24% for the years ended December 31, 2018, 2017 and 2016, if the temporary difference is subject only to IRES (an Italian corporate income tax of 24%) rules, or 27.9% or the years ended December 31, 2018, 2017 and 2016, if the temporary difference is subject both to IRES and IRAP (an Italian regional production tax of 3.9%) rules.

 

The new Italian legislation amended the IRES rates from 27.5% to 24% in 2017 to be used for the income tax calculation of accounting periods ending in the year 2018, 2017 and 2016.

 

The movement on the deferred tax account is as shown below:

 

    2018     2017     2016  
At January 1   $ (2,750,314 )   $ (2,557,571 )   $ (2,764,734 )
                         
Recognized directly in equity                        
Sale of Nova (see note 9 — Discontinued Operations)           206,679        
Currency exchange difference     119,998       (383,555 )     71,026  
                         
Recognized in profit and loss                        
Deferred tax benefit/(expense)     273,071       (15,867 )     136,137  
At December 31,   $ (2,357,245 )   $ (2,750,314 )   $ (2,557,571 )

  

Details of the deferred tax liability and amounts recognized in net loss are as follows:

 

    2018     2018     2018     2018  
    Asset     Liability     (Charged) /
Net
    Movement  
Adjustment for IFRS purposes (deductible/taxable for local tax rules in future fiscal years)                                
Writing off of intangibles   $ 439,775     $     $ 439,775     $ 45,592  
Writing off of tangibles           (52,442 )     (52,442 )     6,904  
Accounting of lease contracts according to IAS 17           (2,141,227 )     (2,141,227 )     244,962  
Accounting of investment properties according to fair value           (352,034 )     (352,034 )     (569,346 )
Loss on investments (internal restructuring)           (251,317 )     (251,317 )      
Other temporary differences                                
Others                       (1,183 )
Total   $ 439,775     $ (2,797,020 )   $ (2,357,245 )   $ (273,071 )

 

    2017     2017     2017     2017  
    Asset     Liability     (Charged) /
Net
    Movement  
Adjustment for IFRS purposes (deductible/taxable for local tax rules in future fiscal years)                                
Writing off of intangibles   $ 507,880     $     $ 507,880     $ 59,767  
Writing off of tangibles           (48,009 )     (48,009 )     11,164  
Accounting of lease contracts according to IAS 17           (1,997,805 )     (1,997,805 )     191,956  
Accounting of investment properties according to fair value           (948,648 )     (948,648 )     (225,124 )
Loss on investments (internal restructuring)           (263,732 )     (263,732 )      
Other temporary differences                                
Bad debt provision                       2,780  
Others                       (24,676 )
Total   $ 507,880     $ (3,258,194 )   $ (2,750,314 )   $ 15,867  

  

 

    2016     2016     2016     2016*  
    Assets     Liabilities     (Charged)/
Net
    Movement  
Adjustment for IFRS purposes (deductible/taxable for local tax rules in future fiscal years)                                
Writing off of intangibles   $ 501,880     $     $ 501,880     $ 97,213  
Writing off of tangibles           (149,164 )     (149,164 )     8,424  
Accounting of lease contracts according to IAS 17           (1,574,288 )     (1,574,289 )     14,091  
Accounting of investment properties according to fair value           (1,107,110 )     (1,107,110 )     (272,437 )
Mark to market on derivative instruments                       53,034  
Loss on investments (internal restructuring)           (231,484 )     (231,484 )     (30,470 )
Other temporary differences                                
Bad debt provision     2,596             2,596       397  
Provision for risk                       217  
Others                       (775 )
Total   $ 504,476     $ (3,062,046 )   $ (2,557,571 )   $ (130,306 )

 

  * Restated for discontinued operations (see note 9 — Discontinued Operations)