Page 69 - annualreport2020

AFRICAN DAWN ANNUAL REPORT 2020

Notes to the Financial Statements continued
Annual Financial Statements For the year ended 29 February 2020

22. Taxation

Major components of the tax expense (income)

Current Group Group Company Company
2020 2019 2020 2019
R’000 R’000 R’000 R’000
Local income tax - current period
Local income tax - recognised relating to prior
periods - 10 - -
- 10 - -

Deferred Group Group Company Company
2020 2019 2020 2019
R’000 R’000 R’000 R’000
- 10 - -

Reconciliation of the tax expense

Reconciliation between accounting loss and tax expense.

Accounting loss from continued operations (10,345) (9,383) (9,922) (3,923)
Tax at the applicable tax rate of 28% (2019: 28%) (2,897) (2,627) (2,778) (1,098)

Tax effect of adjustments on taxable income
Permanent difference interest and penalties SARS - 18 - 18
Permanent difference non-deductible expenses 92 84 92 84
Permanent difference non-taxable income (6) - (6) -
Permanent difference loss on sale of subsidiary - 51 - -
Prior period adjustments - 10 - -
Deferred tax asset not raised 2,811 2,474 2,692 996
- 10 - -

The estimated tax loss available for set off against future taxable income is for all companies in the Group is R 103,873,832 (2019: R 98,532,924).
The company estimated tax loss available for set off against future taxable income is R11,800,553 (2019: R8,126,261) per the terms of the
settlement agreement assessed losses till 2017 are forfeited.

23. Contingent Asset

Arising from the sale of Grindstone to Thinkroom, the “Grindstone Advisory Fee Agreement” was reached in terms of which, if Grindstone
facilitates transactions between Grindstone incubation entities and third party investors, and earns transactional revenue, then Afdawn shall be
entitled to the first R375 000.

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