The composition of the current tax and social security payables and receivables at 31 December 2017 is as follows:
16.1 Current tax and social security receivables and payables
The corporate income tax payable is shown at its net amount, including the advance payment for 2017 made during the year in the amount of 1,338,864.22 euros.
16.2 Reconciliation between accounting profit and corporate income tax expense
The reconciliation between the Company’s accounting profit and profit for the purposes of corporate income tax at 31 December 2017 is as follows
(*) The other adjustments correspond to the application of the 5% tax credit on investments retired prior to the five-year period established in the Corporate Income Tax Law.
16.3 Years open to review for corporate income tax
Under Andorran tax law, tax liabilities cannot be considered definitively settled until either the tax returns filed have been inspected by the tax authorities or the statutory three-year limitation period has expired. Therefore, the Company has the last four years open to inspection for corporate income tax and the last three years for all the other taxes that are applicable to it.
The Company’s Directors believe that the settlements of those taxes have been done properly, so, even if differences were to arise in the interpretation of the regulations governing the tax treatment of its operations, such liabilities as could arise would not have a material effect on the accompanying financial statements.