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NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS
continued
For the year ended 31 May 2016
BLUE LABEL INTEGRATED ANNUAL REPORT 2016
143
7.
Taxation
continued
7.2 Deferred taxation continued
2016
R’000
2015
R’000
Capital allowances
(817)
(121)
Provisions
(18 768)
(19 681)
Tax losses
(16 619)
(21 173)
Other
(3 184)
(1 967)
Total deferred tax asset
(39 388)
(42 942)
Deferred tax liability comprises:
Capital allowances
359
443
Fair value gains
41 715
47 985
Provisions
107
510
Prepayments
4 268
2 354
Unrealised foreign exchange differences
33 868
14 410
Other
—
893
Total deferred tax liability
80 317
66 595
Net deferred tax
40 929
23 653
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
1 713
(561)
Deferred tax assets to be recovered within 12 months
(22 925)
(30 237)
Net deferred tax asset
(21 212)
(30 798)
Deferred tax liabilities
Deferred tax liabilities to be recovered after more than 12 months
68 217
42 306
Deferred tax liabilities to be recovered within 12 months
(6 076)
12 145
Net deferred tax liability
62 141
54 451
Net deferred tax
40 929
23 653
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
R44.3 million (2015: R42.6 million) in respect of losses amounting to R158.2 million (2015: R152.3 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.
2016
R’000
2015
R’000
7.3 Taxation paid
Balance outstanding at the beginning of the year
36 169
25 323
Taxation charge
305 420
275 768
Acquisition of subsidiaries
—
(19 403)
Translation differences
50
(24)
Balance outstanding at the end of the year
(36 521)
(36 169)
305 118
245 495