AFRICAN DAWN ANNUAL REPORT 2017 Notes to the Financial Statements Annual Financial Statements For the year ended 28 February 2017 continued 71 28. Taxation Major components of the tax expense (income) Current Group Group Company Company 2017 2016 2017 2016 R’000 R’000 R’000 R’000 Local income tax - current period 60 442 - - Local income tax - recognised in current tax for prior periods 6 140 - - 66 583 - - Deferred Temporary difference deferred income (11) 54 - Temporary difference on bad debt provision 6 (136) - - Temporary difference leave pay accrual (8) 39 - - Temporary difference assessed losses used and not raised (316) (205) - - Temporary difference Originating on amortisation of Knife Capital intangible assets (369) (369) - - Total temporary differences (698) (617) - - 632 34 - - Reconciliation of the tax expense Reconciliation between accounting loss and tax expense. Accounting loss (12,820) (6,944) (6,650) (4,249) Tax at the applicable tax rate of 28% (2016: 28%) (3,590) (1,944) (1,862) (1,190) Tax effect of adjustments on taxable income Permanent difference interest and penalties SARS 312 317 127 73 Permanent difference donations not allowed 3 2 - - Permanent difference fair value adjustment – Knife acquisition - (560) - (560) Permanent difference deemed interest 164 129 304 - Permanent difference Impairment of goodwill 951 - - - Permanent difference fair value adjustment – property in possession 272 920 - - Deferred tax assets not raised 2,520 1,170 1,431 1,677 632 34 - - No tax loss has been recognised as at year end as the final SARS assessments are still pending. The estimated tax loss available for set off against future taxable income is R 168,854,818 (2016: R 152,383,520). The company estimated tax loss available for set off against future taxable income is R70,946,643 (2016: R65,450,643).
AFRICAN DAWN 2017
To see the actual publication please follow the link above