The difference between the expected income tax expense and the income tax expense shown in the income statement can be explained as follows:

Due to the release of deferred tax liabilities the total income taxes resulted in an income in 2019.

In 2019, deferred taxes in the amount of CHF 61.4 million were reversed after the Canton of Geneva voted on 19 May 2019 that the corporate tax reform should be implemented at cantonal level at the beginning of 2020.

Deferred income taxes are calculated for each subsidiary using the local tax rates. In 2019, the non-capitalised tax assets from losses carried forward decreased from CHF 0.5 million in 2018 to CHF 0.1 million. Deferred income tax assets relate to deferred income taxes on temporary differences. Accrued expenses and other liabilities include accrued taxes of CHF 3.9 million (2018: CHF 5.8 million).