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The income tax expense or credit for the year is the tax payable on the current year's taxable income based on the
applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary
differences and to unused tax losses. |
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Current and deferred taxes are recognised as income or an expense and included in profit or loss for the year,
except to the extent that the tax arises from:
- a transaction or event which is recognised, in the same or different year, to other comprehensive income; or
- a business combination.
|
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Deferred tax assets are recognised to the extent that it is probable that taxable income will be available in the future
against which these can be utilised. Future taxable income is estimated based on business plans which include
estimates and assumptions regarding economic growth, interest rates, inflation and competitive forces. To the
extent that future cash flows and taxable income differ significantly from estimates, the ability of BLT to realise net
deferred tax assets recorded at the end of the reporting period could be impacted. |
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The Directors resolved at the end of the prior and current financial year not to recognise the deferred tax asset.
No income tax charge/(credit) was recognised in the current or prior year. |
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|
2024
R’000 |
|
2023
R’000 |
Reconciliation between loss and tax charge
Loss before taxation |
|
(5 930) |
|
(252 843) |
| Tax at the applicable tax rate of 27% |
|
(1 601) |
|
(68 268) |
| Tax effect of adjustments on taxable loss |
|
|
|
|
| Dividends received not taxable |
|
(112 982) |
|
(8 526) |
| Fair value adjustment on derivative liability |
|
— |
|
(5 940) |
| ECL movement on financial assets and financial guarantees |
|
113 006 |
|
84 145 |
| Expenditure not deductible for tax purposes |
|
1 177 |
|
(2 032) |
| Tax effect of losses not recognised |
|
400 |
|
621 |
| |
|
— |
|
— |
|
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No provision has been made for current tax as BLT has no taxable income. The estimated tax loss available for set
off against future taxable income is R180 893 756 (2023: R180 943 377). |
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