18.

Deferred tax assets and liabilities

Recognized deferred tax assets and liabilities

Deferred tax assets and liabilities at 31 December 2017 and 2016 are attributable to the following:


	Assets						Liabilities						Net
	2017			2016			2017			2016			2017			2016
Property, plant and equipment and intangible assets		41,903			3,516			(680,134	)		(532,547	)		(638,231	)		(529,031	)
Investment		32,926			33,242			—			—			32,926			33,242
Reserve for employee termination benefits and provisions (*)		202,112			55,288			(64	)		—			202,048			55,288
Asset classified as held for sale		—			—			(92,327	)		(90,209	)		(92,327	)		(90,209	)
Trade and other payables		11,717			57,686			(26,091	)		—			(14,374	)		57,686
Tax losses carried forward		—			1,508						—						1,508
Tax allowances		10,775			32,200			—			—			10,775			32,200
Other assets and liabilities		31,916			65,905			(87,795	)		(33,494	)		(55,879	)		32,411

Deferred tax assets/(liabilities)		331,349			249,345			(886,411	)		(656,250	)		(555,062	)		(406,905	)

Offsetting		(235,289	)		(198,090	)		235,289			198,090			—			—

Net deferred tax assets/ (liabilities)		96,060			51,255			(651,122	)		(458,160	)		(555,062	)		(406,905	)

(*)

The Company has treated provisions recognized for legal claims (Note 36) as being deductible for tax purposes and recognized deferred tax assets amounting to TL 74,975 in the consolidated financial statements.

Movement in deferred tax assets/(liabilities) for the years ended 31 December 2017 and 2016 were as follows:


	2017			2016
Opening balance		(406,905	)		(64,822	)
Income statement charge		(133,791	)		(222,497	)
Tax charge relating to components of other comprehensive income		(6,449	)		(7,066	)
Prior year corporate tax base differences		(2,729	)		(109,640	)
Exchange differences		(5,188	)		(2,880	)

Closing balance, net		(555,062	)		(406,905	)

The Group did not recognise deferred income tax assets of TL 502,523 in respect of tax losses amounting to TL 2,698,248 that can be carried forward against future taxable income. The unused tax losses were mainly incurred by lifecell and Belarusian Telecom that are not likely to generate taxable income in the foreseeable future.

Unused tax losses will expire at the following dates:


Expiration Date	Amount
2018		8,911
2019		9,394
2020		8,775
2021		4,467
2022		3,506
2023		281
2024		128,314
2025		803,533
Indefinite		1,731,067

Total		2,698,248