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NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS
CONTINUED
For the year ended 31 May 2015
150
BLUE LABEL INTEGRATED ANNUAL REPORT 2015
2014
R’000
10.
DEFERRED TAXATION continued
Deferred tax asset comprises:
Capital allowances
(121)
(344)
Provisions
(19 681)
(10 999)
Tax losses
(21 173)
(20 057)
Other
(1 967)
(2 525)
Total deferred tax asset
(42 942)
(33 925)
Deferred tax liability comprises:
Capital allowances
443
770
Fair value gains
47 985
37 730
Provisions
510
—
Prepayments
2 354
2 330
Unrealised foreign exchange differences
14 410
7 535
Other
893
2 418
Total deferred tax liability
66 595
50 783
Net deferred tax
23 653
16 858
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
(561)
96
Deferred tax assets to be recovered within 12 months
(30 237)
(24 748)
Net deferred tax asset
(30 798)
(24 652)
Deferred tax liabilities
Deferred tax liabilities to be recovered after more than
12 months
42 306
28 758
Deferred tax liabilities to be recovered within 12 months
12 145
12 752
Net deferred tax liability
54 451
41 510
Net deferred tax
23 653
16 858
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 R42.6 million (2014: R37.1 million) in respect of losses amounting to
R152.3 million (2014: R132.6 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.
2015
R’000