Taxes

Income taxes

Income tax expense comprises the following:

In thousands of Kazakhstani Tenge 2012 2011
Current income tax 14,444,580 16,860,806
Deferred income tax 1,113,283 (95,398)
Total income tax expense 15,557,863 16,765,408

Reconciliation between the expected and the actual taxation charge is provided below:

In thousands of Kazakhstani Tenge 2012 2011
IFRS profit before income tax 77,385,896 83,623,512
Theoretical tax charge at statutory rate of 20 percent
(2011: 20 percent)
15,477,179 16,724,702
Non-deductible expenses 80,684 40,706
Income tax expense 15,557,863 16,765,408

The Group paid income tax in amount of 16,066,945 thousands Tenge for the year ended 31 December 2012 (2011: 17,847,649 thousands Tenge).

Differences between IFRS and Kazakhstani statutory taxation regulations give rise to temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and their tax bases.  The tax effect of the movements in these temporary differences is detailed below and is recorded at the rates which are expected to be applied to the periods when the temporary difference will reverse.

In thousands of Kazakhstani Tenge 31 December 2011 Charged/
(credited) to profit or loss
31 December
2012
Tax effects of deductible temporary differences      
Deferred revenue 879,627 (231,736) 647,891
Other 346,237 132,850 479,087
Gross deferred tax asset 1,225,864 (98,886) 1,126,978
Tax effect of taxable temporary differences      
Property, plant and equipment 5,033,096 1,212,897 6,245,993
Intangible assets 183,702 (198,500) (14,798)
Gross deferred tax liability 5,216,798 1,014,397 6,231,195
Less offsetting with deferred tax assets (1,225,864) 98,886 (1,126,978)
Recognised deferred tax liability, net 3,990,934 1,113,283 5,104,217

Comparative movements for year ended 31 December 2011 is detailed below:

In thousands of Kazakhstani Tenge 31 December 2010 Charged/
(credited) to profit or loss
31 December 2011
Tax effects of deductible temporary differences      
Deferred revenue 919,658 (40,031) 879,627
Other 399,835 (53,598) 346,237
Gross deferred tax asset 1,319,493 (93,629) 1,225,864
Tax effect of taxable temporary differences      
Property, plant and equipment 5,176,048 (142,952) 5,033,096
Intangible assets 229,777 (46,075) 183,702
Gross deferred tax liability 5,405,825 (189,027) 5,216,798
Less offsetting with deferred tax assets (1,319,493) 93,629 (1,225,864)
Recognised deferred tax liability, net 4,086,332 (95,398) 3,990,934

At 31 December 2012 deferred tax asset of 862,919 thousand Tenge and deferred tax liability of 1,246,239 thousand Tenge are expected to be recovered within next 12 months (31 December 2011: 1,031,709 thousand Tenge and 1,625,688 thousand Tenge).