Note 11- Income tax expense

	2010	2009	2008
Current tax expense
Current period	(336,914)	(353,389)	(567,169)
	(336,914)	(353,389)	(567,169)
Deferred tax benefit
Origination and reversal of temporary differences	13,321	9,574	14,893
Benefit of investment incentives recognized	1,187	13.237	2,518
Utilization of previously unrecognized tax losses	1,607	31.834	-
	16,115	13,296	17,411
Total income tax expense	(320,799)	(340,093)	(549,758)

Income tax recognized directly in equity

2010	Before tax	Tax (expense)/ benefit	Net of tax
Foreign currency translation differences	(184,352)	(754)	(185,106)
Net change in fair value of available-for-sale securities	(1,318)	-	(1,318)
	(185,670)	(754)	(186,424)
2009
Foreign currency translation differences	53,046	(1,091)	51,955
Net change in fair value of available-for-sale securities	1,197	-	1,197
	54,243	(1,091)	53,152
2008
Foreign currency translation differences	(1,458,709)	343	(1,458,366)
Net change in fair value of available-for-sale securities	(6,385)	1,025	(5,360)
	(1,465,094)	1,368	(1,463,726)

Reconciliation of effective tax rate

The reported income tax expense for the years ended 31 December 2010, 2009 and 2008 are different than the amounts computed by applying the statutory tax rate to profit before income tax of the Company, as shown in the following reconciliation:

		2010		2009		2008
Profit for the year		1,126,961		1,104,804		1,755,062
Total income tax expense		320,799		340,093		549,758
Profit before income tax		1,447,760		1,444,897		2,304,820
Income tax using the Company's domestic tax rate	20%	(289,552)	20%	(288,979)	20%	(460,964)
Effect of tax rates in foreign jurisdictions	(1)%	12,367	(1)%	10,041	(1)%	17,909
Tax exempt income	-	676	-	1,041	-	6,178
Non-deductible expenses	1%	(19,300)	2%	(29,444)	2%	(42,206)
Tax incentives	-	1,187	-	1,892	-	2,518
Utilization of previously unrecognized tax losses	-	1,607	-	1,830	-	-
Unrecognized deferred tax assets	3%	(47,623)	3%	(48,963)	4%	(83,841)
Difference in effective tax rate of equity accounted investees	(2)%	22,893	(1)%	17,602	(1)%	22,937
Other	-	(3,054)	-	(5,113)	1%	(12,289)
Total income tax expense		(320,799		(340,093)		(549,758)

The income taxes payable of $96,080 and $93,260 as at 31 December 2010 and 2009, respectively, represents the amount of income taxes payable in respect of related taxable profit for the years ended 31 December 2010 and 2009, respectively netted off with advance tax payments. The Turkish entities within the Group are subject to corporate tax at the rate of 20%. In Turkey, there is no procedure for a final and definitive agreement on tax assessments. Companies file their tax returns at the end of A pril following the close of the accounting year to which they relate. Tax authorities may, however, examine such returns and the underlying accounting records and may revise assessments within five years. Advance tax returns are filed on a quarterly basis.

Corporate tax is applied on taxable corporate income, which is calculated from the statutory accounting profit by adding back non-deductible expenses, and by deducting tax exempt income.

In Turkey, the transfer pricing provisions have been stated under the Article 13 of Corporate Tax Law with the heading of "disguised profit distribution via transfer pricing". The General Communiqué on disguised profit distribution via Transfer Pricing, dated 18 November 2007 sets details about implementation.

If a taxpayer enters into transactions regarding sale or purchase of goods and services with related parties, where the prices are not set in accordance with arm's length principle, then related profits are considered to be distributed in a disguised manner through transfer pricing. Such disguised profit distributions through transfer pricing are not accepted as tax deductible for corporate income tax purposes.