As of 31 December 1998, the company had net negative temporary differences between accounting and tax values. The associated deferred tax benefit cannot, according to legislation, be recorded in the balance sheet as an asset. Effective 1 January 1998, the tax treaty between Sweden and Norway was changed. As a result, the calculation of tax on business activities taxable in both Norway and in Sweden, has been switched from the exclusion method to the credit method. Thus, taxable profits are fully taxed in Norway in accordance with Norwegian taxation rules.
Taxes paid in Sweden are a tax credit, offsetting taxes payable in Norway.