Note 7. Income Taxes

The Company files income tax returns for TG and ES in the Republic of Colombia where, as a general rule, taxable income for companies is subject to a 25% Income Tax rate, except for taxpayers with special rates approved by the Congress. A minimum taxable income is calculated as 3% of net equity on the last day of the immediately preceding period and is used as taxable income if it is higher than taxable income otherwise calculated. For tax years 2013 through 2015, a special additional CREE tax will apply at a rate of 9% to certain tax payers including the Company. Starting in 2016, the rate for this tax will be 8%.

The components of income tax expense (benefit) are as follows:

	Three months ended June 30,				Six months ended June 30,
	2014		2013		2014		2013
Current income tax
Foreign		1,900		1,049		4,416		2,044
Deferred income tax
Foreign		363		670		818		1,306
Total Provision for Income tax	$	2,263	$	1,719	$	5,234	$	3,350

The Company’s effective tax rates of 83% and 544% for the three and six month periods ended June 30, 2014 reflect non-deductible losses of $4,585 and $13,525, respectively due to the change in fair value of the Company’s warrant liability.

The Company does not have any uncertain tax positions for which it is reasonably possible that the total amount of gross unrecognized tax benefits will increase or decrease within 12 months of June 30, 2014. The unrecognized tax benefits may increase or change during the next year for items that arise in the ordinary course of business.