Deferred tax assets and liabilities

12 Months Ended

Dec. 31, 2019

18.	Deferred tax assets and liabilities

Recognized deferred tax assets and liabilities

Deferred tax assets and liabilities at 31 December 2019 and 2018 are attributable to the following:


	Assets						Liabilities						Net
	2019			2018			2019			2018			2019			2018
Property, plant and equipment and intangible assets		145,242			106,128			(1,915,567	)		(936,167	)		(1,770,325	)		(830,039	)
Investment		32,926			32,926			—			—			32,926			32,926
Derivative instruments		24,303			15,380			(349,797	)		(429,162	)		(325,494	)		(413,782	)
Reserve for employee termination benefits and provisions		167,589			155,132			(36,289	)		(45,581	)		131,300			109,551
Tax losses carried forward		258,040			224,179			—			—			258,040			224,179
Tax allowances		59,176			20,554			—			—			59,176			20,554
Other assets and liabilities (*)		668,327			248,251			(30,238	)		(101,268	)		638,089			146,983

Deferred tax assets/(liabilities)		1,355,603			802,550			(2,331,891	)		(1,512,178	)		(976,288	)		(709,628	)

Offsetting		(1,166,261	)		(649,818	)		1,166,261			649,818			—			—

Net deferred tax assets/(liabilities)		189,342			152,732			(1,165,630	)		(862,360	)		(976,288	)		(709,628	)

(*)

Mainly comprises of loans, bonds, prepaid expenses and lease liabilities deferred tax assets.

Movement in deferred tax assets/ (liabilities) for the years ended 31 December 2019 and 2018 were as follows:


	2019			2018
Opening balance		(709,628	)		(555,062	)
IFRS 9 and 15 effects		—			(141,213	)
Income statement charge		(215,121	)		159,472
Tax charge relating to components of other comprehensive income		(48,723	)		(157,203	)
Prior year corporate tax base differences		—			(8,608	)
Exchange differences		(2,816	)		(7,014	)

Closing balance, net		(976,288	)		(709,628	)

The Group did not recognize deferred income tax assets of TL 6,588,723 (31 December 2018: TL 5,310,000) in respect of tax losses amounting to TL 1,199,670 (31 December 2018: TL 972,730) that can be carried forward against future taxable income. The unused tax losses were incurred mainly 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
2020		297
2021		220,895
2022		135,055
2023		204,933
2024		346,592
2025		1,201,315
2026		51,353
2027		579,546
2028		169,906
Indefinite		3,678,831

Total		6,588,723