NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS l NOTE 10

    Capital
allowances
R’000		 Fair
value
gains
R’000		 Provisions
R’000		 Tax
losses
R’000		 Prepayments
R’000		 Unrealised
foreign
exchange
differences
R’000		 Other
R’000		 Total
R’000		  
10. DEFERRED TAXATION                  
  At 31 May 2012   1 183 15 390 (4 509) (9 836) 2 526 3 264 1 797 9 815
  Charge/(credited) to statement of comprehensive income   (1 697) (3 556) (12 975) (1 466) (369) 2 792 (1 400) (18 671)
  Acquisition of subsidiary   — 2 734 — — — — — 2 734
  Disposal of subsidiary   429 (1 260) 418 355 (355) — (55) (468)
  At 31 May 2013   (85) 13 308 (17 066) (10 947) 1 802 6 056 342 (6 590)  
  Charge/(credited) to statement of comprehensive income   511 (3 907) 8 394 (9 110) 528 1 479 (449) (2 554)
  Acquisition of subsidiary   — 28 329 (2 327) — — — — 26 002  
  At 31 May 2014   426 37 730 (10 999) (20 057) 2 330 7 535 (107) 16 858  

      2014
R’000		     2013
R’000		  
  Deferred tax asset comprises:            
  Capital allowances   (344)     (876)  
  Provisions   (10 999)     (17 066)  
  Tax losses   (20 057)     (10 947)  
  Other   (2 525)     (2 351)  
  Total deferred tax asset   (33 925)     (31 240)  
  Deferred tax liability comprises:            
  Capital allowances   770     791  
  Fair value gains   37 730     13 308  
  Prepayments   2 330     1 802  
  Unrealised foreign exchange differences   7 535     6 056  
  Other   2 418     2 693  
  Total deferred tax liability   50 783     24 650  
  Net deferred tax liability/(asset)   16 858     (6 590)  
  The analysis of deferred tax assets and deferred tax liabilities is as follows:            
  Deferred tax assets            
  Deferred tax assets to be recovered after more than 12 months   96     (6 159)  
  Deferred tax assets to be recovered within 12 months   (24 748)     (12 373)  
  Net deferred tax asset   (24 652)     (18 532)  
  Deferred tax liabilities            
  Deferred tax liabilities to be recovered after more than 12 months   28 758     10 542  
  Deferred tax liabilities to be recovered within 12 months   12 752     1 400  
  Net deferred tax liability   41 510     11 942  
  Net deferred tax liability/(asset)   16 858     (6 590)  
  Where deferred tax assets have been recognised in respect of entities which have incurred losses in the current or prior years, a formal process of assessment of the future profitability of the entity has been performed based on detailed budgets and cash flow forecasts. As a result, management believes that the current tax losses will be utilised within one to five years.

Deferred tax assets are recognised for tax losses carried forward to the extent that the realisation of the related tax benefit through future taxable profits is probable. The Group did not recognise deferred income tax assets of R37.1 million (2013: R33.2 million) in respect of losses amounting to R132.6 million (2013: R118.5 million) that can be carried forward against future taxable income.

There is no withholding tax that would be payable on any dividends received from the Group’s associates and joint ventures and therefore no deferred tax has been raised in this regard.

NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS l NOTE 10