Annual Report and Accounts 2011

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Notes to the Annual Financial Statements
For the year ended 30 June 2011

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11. Taxation

US$ million 2011 2010
Current taxation
– Current tax credit 1.2 0.1
Deferred taxation
– Current Period (6.4) 1.1
(5.2) 1.2
Reconciliation of tax rate
– Profit before taxation 64.4 69.0
Tax at Bermudan corporate rate of 0%
Effects of:
– Tax rates in foreign jurisdictions (6.0) (6.2)
– Non-deductible expenses (1.0) (2.5)
– Adjustment in respect of prior Periods 1.1 0.2
– Assessed losses utilised 18.1 13.5
– Temporary differences (5.6) 0.3
– Assessed losses and capital allowances not utilised (5.4) (5.2)
Current tax credit 1.2 0.1
Deferred tax movement (6.4) 1.1
Total tax (charge)/credit (5.2) 1.2

During the year, the Group realised a taxation benefit of previously unrecognised tax losses which reduced the current taxation payable by US$0.6 million (30 June 2010: US$1.7 million). Previously the Group did not recognise the tax losses as deferred tax assets (refer to note 25). Tax losses not utilised do not have an expiry period in the country in which they arise, unless the entity ceases to continue trading. Tax losses available but not utilised as at 30 June 2011 amount to US$62.2 million (30 June 2010: US$50.6 million) and primarily arise in South Africa (US$37.0 million) and Tanzania (US$25.2 million); amounts stated include both tax losses and unredeemed capital allowances and are stated at 28% being the tax rate in South Africa and 35% being the tax rate in Tanzania.