178 / 198
For the year ended 31 May 2016
BLUE LABEL INTEGRATED ANNUAL REPORT 2016
176
2016
R’000
2015
R’000
16. Finance costs and finance income
Finance costs
– Bank
6
1
– Unwinding of contingent purchase price
7 806
6 277
– Other
—
6
7 812
6 284
Finance income
– Bank
(327)
(210)
– Loans
(9 940)
(11 586)
(10 267)
(11 797)
Net finance income
(2 455)
(5 513)
17. Taxation
Current tax
—
—
Current year
—
—
Adjustment in respect of prior year
—
—
Deferred tax
5 902
2 679
Current year
6 241
2 608
Adjustment in respect of prior year
(339)
71
5 902
2 679
Tax rate reconciliation
Net profit before tax
185 948
47 944
Tax at 28%
52 065
13 424
Income not subject to tax
(2 749)
(51)
Income of a capital nature
—
(6 219)
Fair value adjustments
(6 473)
1 500
Impairment reversal
(44 216)
(8 524)
Expenditure not deductible for tax purposes
1 212
684
Expenditure of a capital nature
6 654
1 794
Adjustment in respect of prior year
(339)
71
Capital gains tax
(252)
—
5 902
2 679
Effective tax rate
3%
6%
NOTES TO THE COMPANY ANNUAL FINANCIAL STATEMENTS
continued