Incredimail 2013 Annual Report Download - page 128

PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars in thousands (except share and per share data)
Reconciliation of the beginning and ending balances of unrecognized tax benefits
As of December 31, 2013, the entire amount of the unrecognized tax benefits could affect the Company's income ta
provision and the effective tax rate.
During the years ended December 31, 2013, 2012 and 2011 an amount of $ 14, $ 161 and $ 18, respectively, was added
the unrecognized tax benefits derived from interest and exchange rate differences expenses related to prior years' uncerta
tax positions. As of December 31, 2013 and 2012, the Company had accrued interest liability related to uncertain ta
positions in the amounts of $ 14 and $ 246 respectively, which is included within income tax accrual on the balance sheets.
In December 2013 the Company reached settlements with the Israeli Tax Authorities regarding the Company's and its Israe
subsidiary's corporate tax returns from the years 2009-2011 and 2009-
2012, respectively. The settlements amounted to a tot
payment of NIS 10,295 ($ 2,966) including payments for corporate tax on exempt income (refer to above). The Compan
had provisions for the related years in the amount of NIS 13,343 ($ 3,844).
The Company believes that it has adequately provided for any reasonably foreseeable outcome related to tax audits an
settlements. The final tax outcome of its tax audits could be different from that which is reflected in the Company's incom
tax provisions and accruals. Such differences could have a material effect on the Company's income tax provision and n
income in the period in which such determination is made.
NOTE 10:- INCOME TAXES (Cont.)
h.
Income taxes are comprised as follows:
Year ended December 31,
2011
2012
2013
Deferred tax benefit
$
(1,140
)
$
(172
)
$
(356
)
Current taxes
1,312
2,645
2,693
$
172
$
2,473
$
2,337
i.
Uncertain tax position:
December 31,
2012
2013
Balance at January 1
$
2,151
$
3,952
Additions for prior year tax positions
622
115
Decrease related to settlement with tax authorities
(refer to note 2l)
-
(3,844
)
Additions in tax positions for current year
1,179
351
Balance at December 31
$
3,952
$
574
i
.
Income before taxes on income is comprised as follows:
Year ended December 31,
2011 2012 2013
Domestic
$
8,325
$
8,530
$
3,253
Foreign - U.S.A
(2,485
)
(2,523
)
(606
)
$
5,840
$
6,007
$
2,647
NOTE 11:
-
SHAREHOLDERS' EQUITY
a. Ordinary share:
The Ordinary shares entitle their holders to voting rights, the right to receive cash dividend and the right to a share in
excess assets upon liquidation of the Company. In November 18, 2013 the shareholders resolved to increase the authorized
share capital of the Company to 120,000,000 ordinary shares with a nominal value of NIS 0.01 each.