Income tax expense

Amounts in MNOK	2007	2006	2005
Tax payable	101	16	8
Change in deferred tax	192	122	91
Income tax expenses	293	138	99
Effective tax rate	23%	35%	32%

Amounts in MNOK	2007	2006	2005
Profit from continuing operations before taxes	1 279	390	314
Estimated tax based on a tax rate of 28 per cent of the profit before tax	358	109	88
The effect of tax rate differences between Norway and other countries and unbooked tax assets abroad	2	14	3
Tax effect of gains on the sale of shares in property company	(68)	-	-
Other permanent differences	1	15	8
Income tax expenses	293	138	99
Profit from discontinued operations before tax	-	-	15
Income tax on profit from discontinued operations	-	-	5
Income tax on gain upon sale	-	-	10
Income tax expense, discontinued operations	-	-	15
Income tax expense on the income statement	293	138	99
Income tax expense, discontinued operations	-	-	15
Income tax expenses	293	138	114

Deferred tax and deferred tax liabilities

Amounts in MNOK	31 Dec 07	31 Dec 06
Deferred tax assets
Pensions	94	209
Provisions	241	81
Deferred tax asset – gross	335	290
Deferred tax liabilities
Goodwill, property, plant and equipment	225	134
Projects in progress	758	612
Net derivatives	124	17
Deferred tax liabilities – gross	1 107	763
Net recognised deferred tax liabilities	(772)	(473)

Changes in deferred tax recognised directly in equity are as follows:

Amounts in MNOK	31 Dec 07	31 Dec 06
Translation differences	-	(2)
Pensions	7	(34)
Cash flow hedges	80	5
Deferred tax related to acquisitions	32	(1)
Decrease in deferred tax related to sales	(12)	-
Total	107	(32)

The payment of dividends to the parent company's shareholders has no impact on the Group's payable or deferred tax.

No deferred tax has been recognised for latent tax liabilities (withholding tax) related to investments in foreign subsidiaries.