NOTES TO THE ANNUAL FINANCIAL STATEMENTS – 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 2013 (85) 13 308 (17 066) (10 947) 1 802 6 056 342 (6 590)    
  Charged/(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    
  Charged/(credited) to statement of comprehensive income (104) (6 950) (8 084) (1 275) 395 6 875 (1 128) (10 271)    
  Disposal of subsidiary — — 51 159 (371) — 161 —    
  Acquisition of subsidiary — 17 205 (139) — — — — 17 066    
  At 31 May 2015 322 47 985 (19 171) (21 173) 2 354 14 410 (1 074) 23 653    

    2015
R’000		       2014
R'000		  
  Deferred tax asset comprises:            
  Capital allowances (121)       (344)  
  Provisions (19 681)       (10 999)  
  Tax losses (21 173)       (20 057)  
  Other (1 967)       (2 525)  
  Total deferred tax asset (42 942)       (33 925)  
  Deferred tax liability comprises:            
  Capital allowances 443       770  
  Fair value gains 47 985       37 730  
  Provisions 510       —  
  Prepayments 2 354       2 330  
  Unrealised foreign exchange differences 14 410       7 535  
  Other 893       2 418  
  Total deferred tax liability 66 595       50 783  
  Net deferred tax 23 653       16 858  
  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 (561)       96  
  Deferred tax assets to be recovered within 12 months (30 237)       (24 748)  
  Net deferred tax asset (30 798)       (24 652)  
  Deferred tax liabilities            
  Deferred tax liabilities to be recovered after more than            
  12 months 42 306       28 758  
  Deferred tax liabilities to be recovered within 12 months 12 145       12 752  
  Net deferred tax liability 54 451       41 510  
  Net deferred tax 23 653       16 858  
  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 R42.6 million (2014: R37.1 million) in respect of losses amounting to R152.3 million (2014: R132.6 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 ANNUAL FINANCIAL STATEMENTS – NOTE 10