7. TAXATION
7.1

Income tax expense

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at year-end in the countries where the Company’s subsidiaries, associates and joint ventures operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

The tax expense for the period comprises current and deferred tax. Tax is recognised in the income statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity respectively.

Uncertain tax positions are considered by the Group at the level of the individual uncertainty or group of related uncertainties.

Critical accounting estimates and assumptions

There are transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. Amounts accrued are based on management’s interpretation of country-specific tax law and the likelihood of settlement. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the current income tax and deferred tax provisions in the period in which such determination is made.

Deferred tax assets are recognised to the extent that it is probable that taxable income will be available in the future against which these can be utilised. Future taxable income is estimated based on business plans which include estimates and assumptions regarding economic growth, interest rates, inflation and competitive forces.

  2019 
R’000 		   Restated*
2018  
R’000  		  
Current tax  339 670     330 920     
Current year  339 894     330 763     
Adjustment in respect of prior years  (224)    157     
Deferred tax  (24 548)    149     
Current year  (31 542)    149     
Adjustment in respect of prior years  6 994     —     
   315 122     331 069     
Profit before tax  (6 307 074)    1 506 839     
Tax at 28%  (1 765 981)    421 915     
Loss on liquidity support not deductible  41 728     —     
Remeasurement of business acquisition contingent consideration  —     18 232     
Expenditure of a capital nature  5 025     1 948     
Financial guarantee contracts  27 850     —     
Other income not subject to tax  (27 845)    (5 156)    
Other expenses not deductible for tax purposes  73 674     10 535     
Impairment of goodwill  34 832     —     
Interest receivable impaired in prior years written off  —     (8 257)    
Impairment of loan to joint venture (refer to note 2.1) 45 233     39 718     
Impairment of investment in associate and joint venture (refer to note 2.1) 714 186     —     
Surety loan recognition  (8 399)    (15 401)    
Capital gains tax  16 896     —     
Tax effect of assessed losses not recognised  122 919     13 416    
Utilisation of previously unrecognised assessed losses  (460)    (262)    
Share of losses/(profits) from associates and joint ventures (refer to note 2.1) 1 036 395     (145 776)    
Adjustment in respect of prior years  6 770     157     
Effect of different tax dispensations  (8 813)    —     
Withholding tax  1 112     —     
Tax charge  315 122     331 069     
Effective tax rate (%) (5)    22     

* As a result of the prior year error the Group has restated their comparative financial information. Refer to note 11 for details.