Grupo Aval Acciones Y Valores S.A. | CIK:0001504764 | 3

  • Filed: 4/27/2018
  • Entity registrant name: Grupo Aval Acciones Y Valores S.A. (CIK: 0001504764)
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    • ifrs-full:DisclosureOfIncomeTaxExplanatory

    NOTE 19 – INCOME TAX
     
    19.1.
    Components of the income tax expense:
     
    The expense for income tax for the years ended on December 31, 2017, 2016 and 2015 comprise the following:
     
     
     
    December 31,
    2017
     
     
    December 31,
    2016
     
     
    December 31,
    2015
     
    Current period income tax
     
    Ps.
    1,276,458
     
     
    Ps.
    1,264,066
     
     
    Ps.
    1,190,949
     
    Income tax surcharge
     
     
    151,980
     
     
     
    -
     
     
     
    -
     
    CREE tax
     
     
    -
     
     
     
    295,324
     
     
     
    356,475
     
    CREE surcharge
     
     
    -
     
     
     
    193,425
     
     
     
    200,965
     
    Subtotal current period taxes
     
     
    1,428,438
     
     
     
    1,752,815
     
     
     
    1,748,389
     
    Prior years adjustments (1)
     
     
    (117,568
    )
     
     
    (13,440
    )
     
     
    (19,282
    )
    Adjustment due to uncertain tax positions in prior years
     
     
    (7,367
    )
     
     
    (31,067
    )
     
     
    3,542
     
    Deferred taxes
     
     
    449,291
     
     
     
    348,601
     
     
     
    146,321
     
    Total
     
    Ps.
    1,752,794
     
     
    Ps.
    2,056,909
     
     
    Ps.
    1,878,970
     
     
    (1) Includes a Ps. 109,632 tax recovery at Banco de Bogotá for the years 2014, 2015 and 2016
     
    19.2
    Reconciliation of the Nominal Tax Rate and the Effective tax Rate:
     
    The following are the basic parameters in force with respect to income tax:
     
    In Colombia
     
    Colombian regulation for income tax and related taxes applicable during 2017 include the following:
     
    ·
    Taxable income is taxed at a rate of 34% in the year 2017 and 33% in 2018 and subsequent years. And additional income tax surcharge of 6% was created in 2017 and 4% in 2018, for those companies with taxable incomes exceeding Ps. 800.
     
    ·
    Gains on the sale or disposal of non-current assets held for more than two years is taxed at 10%.
     
    ·
    The taxable income for income tax may not be less than 3.5% of each of our tax-declaring companies’ net equity at the end of the preceding year. When the taxable income is less than that this percentage, the difference, known as “presumptive income”, can be offset by taxable income over the following five years.
     
    ·
    Tax loss-carry forwards incurred prior to 2017 may be offset on the same terms applicable for 2016, but they may not be fiscally readjusted. Tax loss carry-forwards incurred since 2017 may be offset against company taxable income over the following twelve years.
     
    ·
    As of 2017 the companies’ taxable income will be determined based in the new accounting regulation in force in Colombia since January 1, 2015. However, the new tax regulation also includes special income tax rules for several transactions.
     
    ·
    Corporate tax returns are in firm by tax authorities three years after the filing date, however if tax loss carry forward are used to offset the taxable income, this term is six years after the filing date.
     
    Colombian regulation for income tax and related taxes applicable until 2016 include the following:
     
    ·
    Taxable income was taxed at rate of 25% and income tax CREE is taxed at rate of 9% with an additional of 6% in 2016 and 5% in 2015.
     
    ·
    Tax loss carry forward incurred since 2007, fiscally readjusted, may be offset with future taxable income at any time, for both income tax and CREE.
     
    ·
    The taxable income of the companies may not be lower than 3% of fiscal equity at the end of the preceding year; and if the taxable income is lower than that base, the difference may be deducted from taxable income within five years of its occurrence, as “excess of presumptive income”.
     
    ·
    The taxable income is determined on the basis of accounting rules applicable in Colombia up to December 31, 2014, prior to the partial introduction of the IFRS framework in Colombian regulations.
     
    ·
    Corporate tax returns are in firm by tax authorities two years after the filing date, however if  tax loss carry forward are used to offset the taxable income, this term is five years after the filing date.
     
    In other countries
     
    Given that our subsidiary Leasing Bogotá Panamá has an international license it has a tax rate of 0%. The subsidiaries in Guatemala are taxed at a rate of 25%; the subsidiaries in El Salvador, Honduras, Costa Rica, Nicaragua and Mexico are taxed at a rate of 30% and the subsidiaries with a local license in Panamá are taxed at a rate of 25%.
     
    Below is the detailed reconciliation between total expenses of the income tax of Grupo Aval calculated at the applicable enacted tax rate and the tax expense recognized in the statement of income for the years ended on December 31, 2017, 2016 and 2015:
     
     
     
    Years ended on:
     
     
     
    December 31,
    2017
     
     
    December 31,
    2016
     
     
    December 31,
    2015
     
    Profit before income tax
     
    Ps.
    4,915,227
     
     
    Ps.
    5,573,845
     
     
    Ps.
    5,224,656
     
    Enacted tax rate in Colombia
     
     
    40
    %
     
     
    40
    %
     
     
    39
    %
    Theoretical income tax expense
     
     
    1,966,091
     
     
     
    2,229,538
     
     
     
    2,037,616
     
    Nondeductible expenses
     
     
    387,933
     
     
     
    339,803
     
     
     
    298,773
     
    Tax losses considered non recoverable for income tax purpose
     
     
    96,266
     
     
     
    140,904
     
     
     
    -
     
    Presumptive income considered non recoverable for income tax purpose
     
     
    7,991
     
     
     
    45,385
     
     
     
    28,954
     
    Wealth tax
     
     
    40,762
     
     
     
    107,051
     
     
     
    118,245
     
    Nontaxable dividends
     
     
    (19,587
    )
     
     
    (15,655
    )
     
     
    (47,883
    )
    Nontaxable income under equity method in associates
     
     
    (68,026
    )
     
     
    (56,306
    )
     
     
    (91,572
    )
    Profit (loss) on sales or appraisal of investment
     
     
    (16,584
    )
     
     
    (71,669
    )
     
     
    (7,697
    )
    Nontaxable interest income and other income
     
     
    (137,312
    )
     
     
    (150,714
    )
     
     
    (61,561
    )
    Other nontaxable income
     
     
    (155,010
    )
     
     
    (83,742
    )
     
     
    (75,171
    )
    Revenues taxable at different tax rate
     
     
    (658
    )
     
     
    (14,983
    )
     
     
    (5,602
    )
    Difference from expenses deductibles at different tax rate
     
     
    (11,822
    )
     
     
    (4,679
    )
     
     
    6,971
     
    Tax benefits in the acquisition of property and equipment
     
     
    (20,585
    )
     
     
    (66,245
    )
     
     
    (67,574
    )
    Profits (losses) in Subsidiaries in tax free countries or with different tax rate
     
     
    (200,661
    )
     
     
    (143,109
    )
     
     
    (66,729
    )
    Effect on the deferred income tax due to changes in tax rates
     
     
    (38,574
    )
     
     
    (96,232
    )
     
     
    (71,962
    )
    Expenses considered non recoverable for deferred income tax purposes
     
     
    -
     
     
     
    1,465
     
     
     
    11,598
     
    Prior year adjustments
     
     
    (117,568
    )
     
     
    (13,440
    )
     
     
    (44,581
    )
    Adjustments due to uncertain tax positions in previous year
     
     
    (7,367
    )
     
     
    (31,067
    )
     
     
    28,374
     
    Other
     
     
    47,505
     
     
     
    (59,396
    )
     
     
    (111,229
    )
    Total tax expense of the year
     
    Ps.
    1,752,794
     
     
    Ps.
    2,056,909
     
     
    Ps.
    1,878,970
     
    Effective income tax rate
     
     
    35.66
    %
     
     
    36.90
    %
     
     
    35.96
    %
     
    19.3
    Tax Losses and excess of Presumptive Income:
     
    As of December 31, 2017 and 2016, following table shows the detail of the tax loss carry forward and excess of presumptive income over taxable income of the entities of Grupo Aval which are not recognized as deferred tax assets.
     
     
     
    December
    31, 2017
     
     
    December
    31, 2016
     
    Tax loss carry forwards expiring on:
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    December 31, 2019
     
     
    4,732
     
     
     
    -
     
    December 31, 2020
     
     
    1,758
     
     
     
    -
     
    December 31, 2029
     
     
    3,107
     
     
     
    -
     
    December 31, 2030
     
     
    160,084
     
     
     
    -
     
    Without expiration date
     
     
    484,376
     
     
     
    397,869
     
    Subtotal
     
     
    654,057
     
     
     
    397,869
     
     
     
     
     
     
     
     
     
     
    Excess of presumptive income expiring on:
     
     
     
     
     
     
     
     
    December 31, 2017
     
     
    -
     
     
     
    5,041
     
    December 31, 2018
     
     
    43,668
     
     
     
    43,307
     
    December 31, 2019
     
     
    64,590
     
     
     
    83,871
     
    December 31, 2020
     
     
    48,170
     
     
     
    54,150
     
    December 31, 2021
     
     
    64,998
     
     
     
    49,600
     
    December 31, 2022
     
     
    46,727
     
     
     
    -
     
    Subtotal
     
     
    268,153
     
     
     
    235,969
     
    Total
     
    Ps.
    922,210
     
     
    Ps.
    633,838
     
     
    19.4
    Deferred Taxes of Subsidiaries Companies:
     
    Grupo Aval did not record deferred income tax liabilities related to temporary differences on investments in subsidiaries, corresponding to earnings from such affiliates of Ps. 6,613,585 and Ps. 6,109,113, as of December 31, 2017 and 2016, respectively. The foregoing due to the fact that: i) Grupo Aval has control over the subsidiaries and consequently it controls the reversion of such temporary differences; and ii) Grupo Aval does not foresee its realization in the near term.
     
    19.5
    Deferred taxes by Type of Temporary Difference:
     
    The differences between the carrying value of the assets and liabilities and their tax bases give rise to the following temporary differences which result in deferred taxes, calculated and recorded in the years ended on December 31, 2017, 2016 and 2015, based on current tax regulations as references for the years wherein such temporary differences will be reverted:
     
    Year ended on December 31, 2017
     
     
     
    Balance as of
    December 31,
    2016
     
     
    Credited
    (charged) to
    profit or loss
     
     
    Credited
    (charged) to
    OCI
     
     
    Reclassifications
     
     
    Balance as of
    December 31,
    2017
     
    Deferred tax assets
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Debt securities at fair value
     
    Ps.
    62,627
     
     
    Ps.
    (30,580
    )
     
    Ps.
    (23,966
    )
     
    Ps.
    -
     
     
    Ps.
    8,081
     
    Equity securities at fair value
     
     
    1,583
     
     
     
    (1,254
    )
     
     
    (321
    )
     
     
    -
     
     
     
    8
     
    Derivative instruments
     
     
    78,740
     
     
     
    (41,935
    )
     
     
    -
     
     
     
    -
     
     
     
    36,805
     
    Accounts receivable
     
     
    16,278
     
     
     
    (15,589
    )
     
     
    -
     
     
     
    10
     
     
     
    699
     
    Differences between the accounting and tax bases of  loans and receivables
     
     
    6,014
     
     
     
    65,924
     
     
     
    -
     
     
     
    -
     
     
     
    71,938
     
    Allowance for impairment on loans and receivables
     
     
    105,573
     
     
     
    (39,446
    )
     
     
    -
     
     
     
    -
     
     
     
    66,127
     
    Allowance for other accounts receivable
     
     
    6,219
     
     
     
    (1,570
    )
     
     
    -
     
     
     
    -
     
     
     
    4,649
     
    Financial assets in concession contracts
     
     
    25,837
     
     
     
    2,571
     
     
     
    -
     
     
     
    128
     
     
     
    28,536
     
    Differences between accounting and tax basis of foreclosed assets
     
     
    4,846
     
     
     
    13,315
     
     
     
    -
     
     
     
    -
     
     
     
    18,161
     
    Differences between accounting and tax basis of the cost in property, plant and equipment
     
     
    296,269
     
     
     
    68,271
     
     
     
    -
     
     
     
    -
     
     
     
    364,540
     
    Differences between accounting and tax basis of accumulated of depreciation of property, plant and equipment
     
     
    5,699
     
     
     
    6,294
     
     
     
    -
     
     
     
    -
     
     
     
    11,993
     
    Biological assets
     
     
    101
     
     
     
    68
     
     
     
    -
     
     
     
    -
     
     
     
    169
     
    Differences between accounting and tax basis of deferred charges and of intangible assets
     
     
    113,817
     
     
     
    30,922
     
     
     
    -
     
     
     
    886
     
     
     
    145,625
     
    Tax losses carry forward
     
     
    385,855
     
     
     
    (53,556
    )
     
     
    -
     
     
     
    55
     
     
     
    332,354
     
    Surplus of presumptive income
     
     
    19,480
     
     
     
    (16,952
    )
     
     
    -
     
     
     
    -
     
     
     
    2,528
     
    Provisions
     
     
    212,695
     
     
     
    (17,649
    )
     
     
    -
     
     
     
    2,917
     
     
     
    197,963
     
    Employee benefits
     
     
    104,606
     
     
     
    (29,658
    )
     
     
    23,976
     
     
     
    -
     
     
     
    98,924
     
    Deferred income
     
     
    113,380
     
     
     
    (113,380
    )
     
     
    -
     
     
     
    -
     
     
     
    -
     
    Lease agreements
     
     
    9.160
     
     
     
    (1,118
    )
     
     
    -
     
     
     
    -
     
     
     
    8,042
     
    Other
     
     
    69,022
     
     
     
    52,233
     
     
     
    935
     
     
     
    1,455
     
     
     
    123,645
     
    Subtotal
     
    Ps.
    1,637,801
     
     
    Ps.
    (123,089
    )
     
    Ps.
    624
     
     
    Ps.
    5,451
     
     
    Ps.
    1,520,787
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Defered tax liabilities
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Debt securities at fair value
     
    Ps.
    (27,278
    )
     
    Ps.
    29,105
     
     
    Ps.
    (46,319
    )
     
    Ps.
    -
     
     
    Ps.
    (44,492
    )
    Equity securities at fair value
     
     
    (122,513
    )
     
     
    302
     
     
     
    33
     
     
     
    952
     
     
     
    (121,226
    )
    Derivative instruments
     
     
    (67,974
    )
     
     
    (15,190
    )
     
     
    (4,361
    )
     
     
    -
     
     
     
    (87,525
    )
    Accounts receivable
     
     
    (260,621
    )
     
     
    (46,335
    )
     
     
    -
     
     
     
    -
     
     
     
    (306,956
    )
    Differences between the accounting and tax bases of  loans and receivables
     
     
    (268,747
    )
     
     
    (53,999
    )
     
     
    -
     
     
     
    -
     
     
     
    (322,746
    )
    Allowance for impairment on loans and receivables
     
     
    (275,785
    )
     
     
    (122,053
    )
     
     
    -
     
     
     
    -
     
     
     
    (397,838
    )
    Differences between accounting and tax basis of foreclosed assets
     
     
    (46,783
    )
     
     
    (25,426
    )
     
     
    -
     
     
     
    -
     
     
     
    (72,209
    )
    Provision for foreclosed assets
     
     
    (37,798
    )
     
     
    (3,856
    )
     
     
    -
     
     
     
    -
     
     
     
    (41,654
    )
    Differences between the accounting and tax base for property plant and equipment costs
     
     
    (400,180
    )
     
     
    36,404
     
     
     
    -
     
     
     
    (38
    )
     
     
    (363,814
    )
    Differences between accounting and tax basis of accumulated of depreciation of property, plant and equipment
     
     
    (209,549
    )
     
     
    30,948
     
     
     
    -
     
     
     
    (1,276
    )
     
     
    (179,877
    )
    Differences between accounting and tax basis of deferred charges and of intangible assets
     
     
    (60,598
    )
     
     
    (47,123
    )
     
     
    -
     
     
     
    -
     
     
     
    (107,721
    )
    Provisions
     
     
    (471
    )
     
     
    (62
    )
     
     
    116
     
     
     
    (158
    )
     
     
    (575
    )
    Goodwill
     
     
    (86,036
    )
     
     
    (83,639
    )
     
     
    -
     
     
     
    -
     
     
     
    (169,675
    )
    Deferred Income
     
     
    (34,613
    )
     
     
    (5,921
    )
     
     
    -
     
     
     
    -
     
     
     
    (40,534
    )
    Financial assets in concession arrangements
     
     
    (718,496
    )
     
     
    20,548
     
     
     
    -
     
     
     
    (2,790
    )
     
     
    (700,738
    )
    Biological assets
     
     
    (6,806
    )
     
     
    (9,777
    )
     
     
    -
     
     
     
    -
     
     
     
    (16,583
    )
    Other
     
     
    (65,400
    )
     
     
    (30,128
    )
     
     
    (11,053
    )
     
     
    2,537
     
     
     
    (104,044
    )
    Subtotal
     
    Ps.
    (2,689,648
    )
     
    Ps.
    (326,202
    )
     
    Ps.
    (61,584
    )
     
    Ps.
    (773
    )
     
    Ps.
    (3,078,207
    )
    Net
     
    Ps.
    (1,051,847
    )
     
    Ps.
    (449,291
    )
     
    Ps.
    (60,960
    )
     
    Ps.
    4,678
     
     
    Ps.
    (1,557,420
    )
     
    Year ended on December 31, 2016
     
     
     
    Balance as of
    December 31,
    2015
     
     
    Credited
    (charged) to
    profit or loss
     
     
    Credited
    (charged) to
    OCI
     
     
    Reclassifications
     
     
    Balance as of
    December 31,
    2016
     
    Deferred tax assets
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Debt securities at fair value
     
    Ps.
    290,465
     
     
    Ps.
    (5,459
    )
     
    Ps.
    (212,090
    )
     
    Ps.
    (10,289
    )
     
    Ps.
    62,627
     
    Equity securities at fair value
     
     
    323
     
     
     
    (26,416
    )
     
     
    27,676
     
     
     
    -
     
     
     
    1,583
     
    Derivative instruments
     
     
    518,992
     
     
     
    (223,831
    )
     
     
    (165,894
    )
     
     
    (50,527
    )
     
     
    78,740
     
    Accounts receivable
     
     
    7,852
     
     
     
    8,426
     
     
     
    -
     
     
     
    -
     
     
     
    16,278
     
    Differences between the accounting and tax bases of  loans and receivables
     
     
    5,652
     
     
     
    362
     
     
     
    -
     
     
     
    -
     
     
     
    6,014
     
    Allowance for impairment on loans and receivables
     
     
    96,054
     
     
     
    9,679
     
     
     
    -
     
     
     
    (160
    )
     
     
    105,573
     
    Allowance for other accounts receivable
     
     
    18,119
     
     
     
    (11,900
    )
     
     
    -
     
     
     
    -
     
     
     
    6,219
     
    Financial assets in concession contracts
     
     
    12,096
     
     
     
    13,741
     
     
     
    -
     
     
     
    -
     
     
     
    25,837
     
    Differences between accounting and tax basis of foreclosed assets
     
     
    13,326
     
     
     
    (8,480
    )
     
     
    -
     
     
     
    -
     
     
     
    4,846
     
    Differences between accounting and tax basis of the cost in property, plant and equipment
     
     
    58,505
     
     
     
    237,739
     
     
     
    -
     
     
     
    25
     
     
     
    296,269
     
    Differences between accounting and tax basis of accumulated of depreciation of property, plant and equipment
     
     
    5,415
     
     
     
    284
     
     
     
    -
     
     
     
    -
     
     
     
    5,699
     
    Biological assets
     
     
    369
     
     
     
    (268
    )
     
     
    -
     
     
     
    -
     
     
     
    101
     
    Differences between accounting and tax basis of deferred charges and of intangible assets
     
     
    77,055
     
     
     
    37,167
     
     
     
    -
     
     
     
    (405
    )
     
     
    113,817
     
    Tax losses carry forward
     
     
    527,153
     
     
     
    (140,623
    )
     
     
    -
     
     
     
    (675
    )
     
     
    385,855
     
    Surplus of presumptive income
     
     
    166,116
     
     
     
    (146,636
    )
     
     
    -
     
     
     
    -
     
     
     
    19,480
     
    Provisions
     
     
    146,578
     
     
     
    60,716
     
     
     
    5,706
     
     
     
    (305
    )
     
     
    212,695
     
    Employee benefits
     
     
    101,224
     
     
     
    (5,718
    )
     
     
    8,677
     
     
     
    423
     
     
     
    104,606
     
    Goodwill
     
     
    6,947
     
     
     
    (6,947
    )
     
     
    -
     
     
     
    -
     
     
     
    -
     
    Deferred income
     
     
    35,857
     
     
     
    77,523
     
     
     
    -
     
     
     
    -
     
     
     
    113,380
     
    Lease agreements
     
     
    8,414
     
     
     
    746
     
     
     
    -
     
     
     
    -
     
     
     
    9.160
     
    Other
     
     
    174,966
     
     
     
    (107,102
    )
     
     
    -
     
     
     
    1,158
     
     
     
    69,022
     
    Subtotal
     
    Ps.
    2,271,478
     
     
    Ps.
    (236,997
    )
     
    Ps.
    (335,925
    )
     
    Ps.
    (60,755
    )
     
    Ps.
    1,637,801
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Deffered tax liabilities
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Debt securities at fair value
     
     
    (19,943
    )
     
     
    44,338
     
     
     
    (51,673
    )
     
     
    -
     
     
     
    (27,278
    )
    Equity securities at fair value
     
     
    (104,317
    )
     
     
    (9,072
    )
     
     
    13,059
     
     
     
    (154
    )
     
     
    (100,484
    )
    Derivative instruments
     
     
    (333,317
    )
     
     
    240,468
     
     
     
    (21,586
    )
     
     
    46,461
     
     
     
    (67,974
    )
    Accounts receivable
     
     
    -
     
     
     
    (260,621
    )
     
     
    -
     
     
     
    -
     
     
     
    (260,621
    )
    Differences between the accounting and tax bases of  loans and receivables
     
     
    (238,492
    )
     
     
    (30,255
    )
     
     
    -
     
     
     
    -
     
     
     
    (268,747
    )
    Allowance for impairment on loans and receivables
     
     
    (227,336
    )
     
     
    (48,449
    )
     
     
    -
     
     
     
    -
     
     
     
    (275,785
    )
    Differences between accounting and tax basis of foreclosed assets
     
     
    (83,774
    )
     
     
    36,991
     
     
     
    -
     
     
     
    -
     
     
     
    (46,783
    )
    Provision for foreclosed assets
     
     
    (15,198
    )
     
     
    (22,600
    )
     
     
    -
     
     
     
    -
     
     
     
    (37,798
    )
    Differences between the accounting and tax base for property plant and equipment costs
     
     
    (355,478
    )
     
     
    (44,865
    )
     
     
    -
     
     
     
    163
     
     
     
    (400,180
    )
    Differences between accounting and tax basis of accumulated of depreciation of property, plant and equipment
     
     
    (227,591
    )
     
     
    18,114
     
     
     
    -
     
     
     
    (72
    )
     
     
    (209,549
    )
    Differences between accounting and tax basis of deferred charges and of intangible assets
     
     
    (60,003
    )
     
     
    (595
    )
     
     
    -
     
     
     
    -
     
     
     
    (60,598
    )
    Unrealized profits of foreign subsidiaries
     
     
    (38,209
    )
     
     
    16,180
     
     
     
    -
     
     
     
    -
     
     
     
    (22,029
    )
    Provisions
     
     
    (1,961
    )
     
     
    1,490
     
     
     
    -
     
     
     
    -
     
     
     
    (471
    )
    Goodwill
     
     
    (42,822
    )
     
     
    (43,214
    )
     
     
    -
     
     
     
    -
     
     
     
    (86,036
    )
    Deferred Income
     
     
    (26,940
    )
     
     
    (7,673
    )
     
     
    -
     
     
     
    -
     
     
     
    (34,613
    )
    Financial assets in concession arrangements
     
     
    (627,666
    )
     
     
    (90,830
    )
     
     
    -
     
     
     
    -
     
     
     
    (718,496
    )
    Biological assets
     
     
    (17,578
    )
     
     
    3,320
     
     
     
    -
     
     
     
    7,452
     
     
     
    (6,806
    )
    Other
     
     
    (152,824
    )
     
     
    85,669
     
     
     
    -
     
     
     
    1,755
     
     
     
    (65,400
    )
    Subtotal
     
    Ps.
    (2,573,449
    )
     
    Ps.
    (111,604
    )
     
    Ps.
    (60,200
    )
     
    Ps.
    55,605
     
     
    Ps.
    (2,689,648
    )
    Net
     
    Ps.
    (301,971
    )
     
    Ps.
    (348,601
    )
     
    Ps.
    (396,125
    )
     
    Ps.
    (5,150
    )
     
    Ps.
    (1,051,847
    )
     
    Year ended on December 31, 2015
     
     
     
    Balance as of
    December  31,
    2014
     
     
    Credited
    (charged) to
    profit or loss
     
     
    Credited
    (charged) to
    OCI
     
     
    Reclassifications
     
     
    Balance as of
    December 31,
    2015
     
    Deferred tax assets
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Debt securities at fair value
     
    Ps.
    17,317
     
     
    Ps.
    240,415
     
     
    Ps.
    263,532
     
     
    Ps.
    (230,799
    )
     
    Ps.
    290,465
     
    Equity securities at fair value
     
     
    7,505
     
     
     
    (1,082
    )
     
     
    -
     
     
     
    (6,100
    )
     
     
    323
     
    Derivatives instruments
     
     
    555,521
     
     
     
    (159,875
    )
     
     
    (19,044
    )
     
     
    142,390
     
     
     
    518,992
     
    Differences between the accounting and tax bases of the loans and receivables
     
     
    30,998
     
     
     
    (26,337
    )
     
     
    -
     
     
     
    991
     
     
     
    5,652
     
    Account receivable
     
     
    -
     
     
     
    7,852
     
     
     
    -
     
     
     
    -
     
     
     
    7,852
     
    Allowance for impairment on loans and receivables
     
     
    102,662
     
     
     
    12,503
     
     
     
    -
     
     
     
    (19,111
    )
     
     
    96,054
     
    Allowance for other accounts receivable
     
     
    1,897
     
     
     
    (1,730
    )
     
     
    -
     
     
     
    17,952
     
     
     
    18,119
     
    Financial asset in concession contracts
     
     
    11,341
     
     
     
    588
     
     
     
    -
     
     
     
    167
     
     
     
    12,096
     
    Differences between accounting and tax basis of goods received as payment
     
     
    30,180
     
     
     
    (16,854
    )
     
     
    -
     
     
     
    -
     
     
     
    13,326
     
    Differences between accounting and tax basis of the cost in property, plant and equipment
     
     
    39,561
     
     
     
    21,074
     
     
     
    -
     
     
     
    (2,130
    )
     
     
    58,505
     
    Differences between accounting and tax basis of accumulated of depreciation of property, plant and equipment
     
     
    6,938
     
     
     
    (1,526
    )
     
     
    -
     
     
     
    3
     
     
     
    5,415
     
    Biological assets
     
     
    4,580
     
     
     
    (4,211
    )
     
     
    -
     
     
     
    -
     
     
     
    369
     
    Differences between accounting and tax basis of deferred charges of intangible assets
     
     
    59,354
     
     
     
    17,701
     
     
     
    -
     
     
     
    -
     
     
     
    77,055
     
    Tax losses carry forward
     
     
    45,601
     
     
     
    3,020
     
     
     
    478,532
     
     
     
    -
     
     
     
    527,153
     
    Surplus of presumptive income
     
     
    16,147
     
     
     
    (13,249
    )
     
     
    163,218
     
     
     
    -
     
     
     
    166,116
     
    Provisions
     
     
    126,762
     
     
     
    23,070
     
     
     
    -
     
     
     
    (3,254
    )
     
     
    146,578
     
    Employee benefits
     
     
    104,872
     
     
     
    3,927
     
     
     
    (7,251
    )
     
     
    (324
    )
     
     
    101,224
     
    Goodwill
     
     
    6,947
     
     
     
    -
     
     
     
    -
     
     
     
    -
     
     
     
    6,947
     
    Deferred Income
     
     
    8,092
     
     
     
    30,574
     
     
     
    -
     
     
     
    (2,809
    )
     
     
    35,857
     
    Lease agreements
     
     
    7,315
     
     
     
    1,099
     
     
     
    -
     
     
     
    -
     
     
     
    8,414
     
    Other
     
     
    180,108
     
     
     
    (68,038
    )
     
     
    -
     
     
     
    62,896
     
     
     
    174,966
     
    Subtotal
     
    Ps.
    1,363,698
     
     
    Ps.
    68,921
     
     
    Ps.
    878,987
     
     
    Ps.
    (40,128
    )
     
    Ps.
    2,271,478
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Deffered tax liabilities
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Debt securities at fair value
     
     
    9,509
     
     
     
    (243,790
    )
     
     
    -
     
     
     
    214,338
     
     
     
    (19,943
    )
    Equity securities at fair value
     
     
    (103,469
    )
     
     
    103
     
     
     
    -
     
     
     
    (951
    )
     
     
    (104,317
    )
    Derivatives instruments
     
     
    (346,677
    )
     
     
    149,307
     
     
     
    -
     
     
     
    (135,947
    )
     
     
    (333,317
    )
    Differences between the accounting and tax bases of the loans and receivables
     
     
    (77,205
    )
     
     
    (27,030
    )
     
     
    -
     
     
     
    (134,257
    )
     
     
    (238,492
    )
    Allowance for impairment on loans and receivables
     
     
    (366,953
    )
     
     
    5,457
     
     
     
    -
     
     
     
    134,160
     
     
     
    (227,336
    )
    Differences between the accounting and tax base of goods received as payment
     
     
    (60,587
    )
     
     
    (44,414
    )
     
     
    -
     
     
     
    21,227
     
     
     
    (83,774
    )
    Provision for goods received as payment
     
     
    (10,070
    )
     
     
    (5,151
    )
     
     
    -
     
     
     
    23
     
     
     
    (15,198
    )
    Differences between the accounting and tax base for property plant and equipment costs
     
     
    (453,088
    )
     
     
    98,866
     
     
     
    -
     
     
     
    (1,256
    )
     
     
    (355,478
    )
    Differences between accounting and tax basis of accumulated of depreciation of property, plant and equipment
     
     
    (207,123
    )
     
     
    (23,775
    )
     
     
    -
     
     
     
    3,307
     
     
     
    (227,591
    )
    Differences between accounting and tax basis of deferred charges of intangible assets
     
     
    (33,639
    )
     
     
    (26,364
    )
     
     
    -
     
     
     
    -
     
     
     
    (60,003
    )
    Profits not carried as investments in subsidiaries
     
     
    (17,974
    )
     
     
    (20,235
    )
     
     
    -
     
     
     
    -
     
     
     
    (38,209
    )
    Provisions
     
     
    (24,468
    )
     
     
    18,448
     
     
     
    -
     
     
     
    4,059
     
     
     
    (1,961
    )
    Goodwill
     
     
    (23,166
    )
     
     
    (19,656
    )
     
     
    -
     
     
     
    -
     
     
     
    (42,822
    )
    Accumulative translation adjustment in foreign operations
     
     
    (22,661
    )
     
     
    (7,088
    )
     
     
    -
     
     
     
    2,809
     
     
     
    (26,940
    )
    Financial and intangible assets in concession contracts
     
     
    (484,105
    )
     
     
    (143,561
    )
     
     
    -
     
     
     
    -
     
     
     
    (627,666
    )
    Biological assets
     
     
    (10,098
    )
     
     
    (7,480
    )
     
     
    -
     
     
     
    -
     
     
     
    (17,578
    )
    Other
     
     
    (137,604
    )
     
     
    81,121
     
     
     
    -
     
     
     
    (96,340
    )
     
     
    (152,823
    )
    Subtotal
     
    Ps.
    (2,369,378
    )
     
    Ps.
    (215,242
    )
     
    Ps.
    -
     
     
    Ps.
    11,171
     
     
    Ps.
    (2,573,449
    )
    Net
     
    Ps.
    (1,005,680
    )
     
    Ps.
    (146,321
    )
     
    Ps.
    878,987
     
     
    Ps.
    (28,957
    )
     
    Ps.
    (301,971
    )
     
    The Group offsets deferred tax assets and liabilities by entity and tax authority, considering the application of the tax provisions in Colombia and other countries in which the legal right to offset tax assets and liabilities and other requirements in IAS 12, according to the following breakdown:
     
    December 31, 2017
     
    Gross Deferred tax
    amounts
     
     
    Offset
     
     
    Balances on Statement
    of financial position
     
    Deferred tax asset
     
    Ps.
    1,520,787
     
     
    Ps.
    (1,381,364
    )
     
    Ps.
    139,423
     
    Deferred tax liability
     
     
    (3,078,207
    )
     
     
    1,381,364
     
     
     
    (1,696,843
    )
    Net
     
    Ps.
    (1,557,420
    )
     
    Ps.
    -
     
     
    Ps.
    (1,557,420
    )
     
    December 31, 2016
     
    Gross Deferred tax
    amounts
     
     
    Offset
     
     
    Balances on Statement
    of financial position
     
    Deferred tax asset
     
    Ps.
    1,637,801
     
     
    Ps.
    (1,442,839
    )
     
    Ps.
    194,962
     
    Deferred tax liability
     
     
    (2,689,648
    )
     
     
    1,442,839
     
     
     
    (1,246,809
    )
    Net
     
    Ps.
    (1,051,847
    )
     
    Ps.
    -
     
     
    Ps.
    (1,051,847
    )
     
    19.6
    Effect of the current and deferred taxes in each component of other comprehensive income in equity:
     
    The effects of the current and deferred taxes in each component of other comprehensive income is detailed below during the years ended on December 31, 2017, 2016 and 2015:
     
     
     
    December 31, 2017
     
     
     
    Amount
    before taxes
     
     
    Current
    tax
    expense
    (Income)
     
     
    Deferred
    tax
    expense
    (income)
     
     
    Net
     
    Hedging of net investments in foreign subsidiaries operations
     
    Ps.
    (47,197
    )
     
    Ps.
    -
     
     
    Ps.
    -
     
     
    Ps.
    (47,197
    )
    Hedging derivatives in foreign currency
     
     
    16,832
     
     
     
    -
     
     
     
    (5,554
    )
     
     
    11,278
     
    Hedging financial liabilities in foreign currency
     
     
    30,568
     
     
     
    -
     
     
     
    (11,065
    )
     
     
    19,503
     
    Cash Flow hedging
     
     
    (2,340
    )
     
     
    -
     
     
     
    969
     
     
     
    (1,371
    )
    Foreign currency translation differences for foreign operations
     
     
    (91,497
    )
     
     
    (12,657
    )
     
     
    956
     
     
     
    (103,198
    )
    Debt financial instruments
     
     
    284,480
     
     
     
    -
     
     
     
    (69,743
    )
     
     
    214,737
     
    Equity financial instruments
     
     
    57,245
     
     
     
    -
     
     
     
    (720
    )
     
     
    56,525
     
    Investment in associates and joint ventures
     
     
    1,128
     
     
     
    -
     
     
     
    116
     
     
     
    1,244
     
    Actuarial gains (losses) from defined benefit pension plans
     
     
    (100,232
    )
     
     
    -
     
     
     
    24,081
     
     
     
    (76,151
    )
    Total “other comprehensive income” during the period
     
    Ps.
    148,987
     
     
    Ps.
    (12,657
    )
     
    Ps.
    (60,960
    )
     
    Ps.
    75,370
     
     
     
     
    December 31, 2016
     
     
     
    Amount
    before taxes
     
     
    Current
    tax
    expense
    (Income)
     
     
    Deferred
    tax
    expense
    (income)
     
     
    Net
     
    Hedging of net investments in foreign subsidiaries operations
     
    Ps.
    (475,000
    )
     
    Ps.
    -
     
     
    Ps.
    -
     
     
    Ps.
    (475,000
    )
    Hedging derivatives in foreign currency
     
     
    291,506
     
     
     
    47,419
     
     
     
    (187,480
    )
     
     
    151,445
     
    Hedging financial liabilities in foreign currency
     
     
    35,819
     
     
     
    (23,854
    )
     
     
    -
     
     
     
    11,965
     
    Cash Flow hedging
     
     
    17,967
     
     
     
    -
     
     
     
    -
     
     
     
    17,967
     
    Foreign currency translation differences for foreign operations
     
     
    (125,161
    )
     
     
    8,204
     
     
     
    -
     
     
     
    (116,957
    )
    Debt financial instruments
     
     
    948,212
     
     
     
    -
     
     
     
    (263,763
    )
     
     
    684,449
     
    Equity financial instruments
     
     
    34,509
     
     
     
    -
     
     
     
    40,735
     
     
     
    75,244
     
    Investment in associates and joint ventures
     
     
    (20,061
    )
     
     
    -
     
     
     
    -
     
     
     
    (20,061
    )
    Actuarial gains (losses) from defined benefit pension plans
     
     
    (41,228
    )
     
     
    -
     
     
     
    14,383
     
     
     
    (26,845
    )
    Total “other comprehensive income” during the period
     
    Ps.
    666,563
     
     
    Ps.
    31,769
     
     
    Ps.
    (396,125
    )
     
    Ps.
    302,207
     
     
     
     
    December 31, 2015
     
     
     
    Amount
    before
    taxes
     
     
    Current
    tax
    expense
    (income)
     
     
    Deferred tax
    expense
    (income)
     
     
    Net
     
    Hedging of net investments in foreign subsidiaries operations
     
    Ps.
    2,366,849
     
     
    Ps.
    (37,861
    )
     
    Ps.
    -
     
     
    Ps.
    2,328,988
     
    Hedging derivatives in foreign currency
     
     
    (1,683,346
    )
     
     
    89,960
     
     
     
    629,531
     
     
     
    (963,855
    )
    Hedging financial liabilities in foreign currency
     
     
    (755,431
    )
     
     
    267,528
     
     
     
    -
     
     
     
    (487,903
    )
    Cash Flow hedging
     
     
    17,500
     
     
     
    -
     
     
     
    (6,825
    )
     
     
    10,675
     
    Foreign currency translation differences for foreign operations
     
     
    24,878
     
     
     
    -
     
     
     
    -
     
     
     
    24,878
     
    Debt financial instruments
     
     
    (922,083
    )
     
     
    -
     
     
     
    263,532
     
     
     
    (658,551
    )
    Equity financial instruments
     
     
    (6,548
    )
     
     
    -
     
     
     
    -
     
     
     
    (6,548
    )
    Investment in associates and joint ventures
     
     
    31,964
     
     
     
    -
     
     
     
    -
     
     
     
    31,964
     
    Actuarial gains (losses) from defined benefit pension plans
     
     
    6,162
     
     
     
    -
     
     
     
    (7,251
    )
     
     
    (1,089
    )
    Total “other comprehensive income” during the period
     
    Ps.
    (920,055
    )
     
    Ps.
    319,627
     
     
    Ps.
    878,987
     
     
    Ps.
    278,559
     
     
    19.7
    Uncertainties in Open Tax Positions
     
    As of December 31, 2017 and 2016, Grupo Aval recognized tax uncertainty liabilities for Ps. 94,692 and Ps. 104,156 respectively, uncertain tax positions corresponding to expenses of employees’ benefits, considered deductible, and which, according to decisions of the tax authorities, uncertainties taken for human resources and public relations could be considered as non-deductible. Grupo Aval estimates those exposures are likely to be required and rejected by the tax authorities. These tax positions cannot be deducted with future taxes.
     
    Uncertainties on open tax positions of the four banks of Grupo Aval are as follows:
     
    Bank
     
    December 31, 2017
     
     
    December 31, 2016
     
    Bogotá
     
    Ps.
    86,592
     
     
    Ps.
    66,428
     
    Occidente
     
     
    7,657
     
     
     
    31,463
     
    Popular
     
     
    443
     
     
     
    338
     
    Villas
     
     
    -
     
     
     
    5,927
     
    Total
     
    Ps.
    94,692
     
     
    Ps.
    104,156
     
     
    Penalties and interests are accumulated and recognized as operating expenses.
     
    The roll-forward of tax uncertainties during the years ended on December 31, 2017, 2016 and 2015 is as follows:
     
     
     
    December 31,
    2017
     
     
    December 31,
    2016
     
     
    December 31,
    2015
     
    Balance at the beginning of the year
     
    Ps.
    104,156
     
     
    Ps.
    145,968
     
     
    Ps.
    114,627
     
    Provisions increase during the year
     
     
    18,039
     
     
     
    31,039
     
     
     
    30,191
     
    Provisions used
     
     
    (873
    )
     
     
    (1,867
    )
     
     
    (1,145
    )
    Amounts reversed due to provisions not used
     
     
    (32,010
    )
     
     
    (73,084
    )
     
     
    (25,259
    )
    Financial cost
     
     
    7,477
     
     
     
    12,098
     
     
     
    7,541
     
    Foreign exchange adjustments
     
     
    (2,097
    )
     
     
    (9,998
    )
     
     
    20,013
     
    Balance at the end of the year
     
    Ps.
    94,692
     
     
    Ps.
    104,156
     
     
    Ps.
    145,968
     
     
    The balance as of December 31, 2017 and 2016 is expected to be completely used or released once the inspection rights from the tax authorities regarding tax returns expire, as follows:
     
    Year
     
    December 31,
    2017
     
     
    December 31,
    2016
     
    2017
     
     
    -
     
     
     
    10,027
     
    2018
     
     
    3,484
     
     
     
    11,057
     
    2019
     
     
    3,109
     
     
     
    13,670
     
    2020
     
     
    21,579
     
     
     
    23,926
     
    2021
     
     
    23,902
     
     
     
    24,413
     
    2022
     
     
    23,034
     
     
     
    19,681
     
    2023
     
     
    18,250
     
     
     
    1,382
     
    2024
     
     
    1,334
     
     
     
    -
     
    Total
     
    Ps.
    94,692
     
     
    Ps.
    104,156