NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS l NOTE 9

9. Deferred taxation                                
        Capital
allowances
R’000		   Fair
value
gains
R’000		   Provisions
R’000		   Tax
losses
R’000		   Prepayments
R’000		   Other
R’000		   Total
R’000		  
  At 31 May 2011     1 799   20 776   (5 951)   (18 263)   2 534   3 254   4 149  
  Charge/(credited) to statement of                                
  comprehensive income     (697)   (6 898)   1 416   7 874   173   1 810   3 678  
  Acquisition of subsidiary     —   1 512   —   —   —   —   1 512  
  Disposal of subsidiary     81   —   26   553   (181)   (3)   476  
  At 31 May 2012     1 183   15 390   (4 509)   (9 836)   2 526   5 061   9 815  
  Charge/(credited) to statement of comprehensive income     (1 697)   (3 556)   (12 975)   (1 466)   (369)   1 392   (18 671)  
  Acquisition of subsidiaries     —   2 734   —   —   —   —   2 734  
  Disposal of subsidiaries     429   (1 260)   418   355   (355)   (55)   (468)  
  At 31 May 2013     (85)   13 308   (17 066)   (10 947)   1 802   6 398   (6 590)  

        2013
R’000		   2012
R’000		  
  Deferred tax asset comprises:            
  Capital allowances     (876)   (1 372)  
  Provisions     (17 066)   (4 578)  
  Tax losses     (10 947)   (9 836)  
  Other     (2 351)   (1 546)  
  Total deferred tax asset     (31 240)   (17 332)  
  Deferred tax liability comprises:            
  Capital allowances     791   2 555  
  Fair value gains     13 308   15 390  
  Provisions     —   69  
  Prepayments     1 802   2 526  
  Other     8 749   6 607  
  Total deferred tax liability     24 650   27 147  
  Net deferred tax (asset)/liability     (6 590)   9 815  
  The analysis of deferred tax assets and deferred tax liabilities is as follows:            
  Deferred tax assets            
  Deferred tax assets to be recovered after more than 12 months     (6 159)   (5 200)  
  Deferred tax assets to be recovered within 12 months     (12 373)   (6 583)  
  Net deferred tax asset     (18 532)   (11 783)  
  Deferred tax liabilities            
  Deferred tax liabilities to be recovered after more than 12 months     10 542   43  
  Deferred tax liabilities to be recovered within 12 months     1 400   21 555  
  Net deferred tax liability     11 942   21 598  
  Net deferred tax (asset)/liability     (6 590)   9 815  
  Where deferred tax assets have been recognised in respect of entities which have incurred losses in the current or prior years, a formal process of assessment of the future profitability of the entity has been performed based on detailed budgets and cash flow forecasts. As a result, management believes that the current tax losses will be utilised within one to five years

Deferred tax assets are recognised for tax losses carried forward to the extent that the realisation of the related tax benefit through future taxable profits is probable. The Group did not recognise deferred income tax assets of R33.2 million (2012: R23.1 million) in respect of losses amounting to R118.5 million (2012: R82.6 million) that can be carried forward against future taxable income.

There is no withholding tax that would be payable on any dividends received from the Group’s associates and joint ventures and therefore no deferred tax has been raised in this regard.

NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS l NOTE 9