|
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at
year-end in the countries where the Company's subsidiaries, associates and joint ventures operate and generate
taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which
applicable tax regulations are subject to interpretation and establishes provisions where appropriate on the basis of
amounts expected to be paid to the tax authorities. |
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The tax expense for the period comprises current and deferred tax. Tax is recognised in the income statement,
except to the extent that it relates to items recognised in other comprehensive income or directly in equity, In this
case, the tax is also recognised in other comprehensive income or directly in equity respectively. |
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Uncertain tax positions are considered by the Group at the level of the individual uncertainty or group of related
uncertainties. |
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Critical accounting estimates and assumptions
There are transactions and calculations for which the ultimate tax determination is uncertain during the ordinary
course of business. Amounts accrued are based on management's interpretation of country'specific tax law and
the likelihood of settlement. Where the final tax outcome of these matters is different from the amounts that were
initially recorded, such differences will impact the current income tax and deferred tax provisions in the period in
which such determination is made. |
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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. |
|
|
|
| 2025
R'000 |
| 2024
R'000 |
| Current tax |
| 337 776 |
| 133 696 |
| Current year |
| 308 905 |
| 123 128 |
| Adjustment in respect of prior years |
| 28 871 |
| 10 568 |
| Deferred tax |
| (193 971) |
| 61 922 |
| Current year |
| (156 297) |
| 69 894 |
| Adjustment in respect of prior years |
| (37 674) |
| (7 972) |
| Transfer from other comprehensive income |
| — |
| 2 337 |
| Income tax expense |
| 143 805 |
| 197 955 |
|
|
|
|
|
|
| 2025
R'000 |
% |
| 2024
R'000 |
% |
| Profit before tax |
| 2 624 525 |
|
| 857 540 |
|
| Tax at 27% |
| 708 622 |
27.0 |
| 231 536 |
27.0 |
| Expenditure of a capital nature |
| 3 140 |
0.1 |
| — |
— |
| Tax arising from the Cell C Recapitalisation transaction |
| (81 347) |
(3.1) |
| 17 466 |
2.0 |
| Reversal of impairment of investment in associate |
| (419 861) |
(16.0) |
| — |
— |
| (Loss)/gain on modification of financial asset |
| 5 068 |
0.2 |
| (5 584) |
(0.7) |
| Loss on derecognition of financial asset |
| 9 208 |
0.4 |
| 14 380 |
1.7 |
| ECL movement on loans receivable |
| (82 154) |
(3.1) |
| 33 168 |
3.9 |
| Learnership allowances |
| (61 365) |
(2.3) |
| (66 951) |
(7.8) |
| Employment tax incentive |
| (11 267) |
(0.4) |
| (12 924) |
(1.5) |
| Surety loan fair value adjustment |
| (779) |
0.0 |
| (690) |
(0.1) |
| Other income not subject to tax |
| (10 668) |
(0.4) |
| (21 290) |
(2.5) |
| Other expenses not deductible for tax purposes |
| 66 652 |
2.5 |
| 7 933 |
0.9 |
| Tax effect of assessed losses not recognised |
| 11 726 |
0.4 |
| 420 |
0.0 |
| Utilisation of previously unrecognised assessed losses |
| (50) |
0.0 |
| (280) |
(0.0) |
| Share of losses/(profits) from associates and joint ventures (refer to note 2.1.1) |
| 14 951 |
0.6 |
| (4 162) |
(0.5) |
| Adjustment in respect of prior years |
| (8 803) |
(0.3) |
| 2 596 |
0.3 |
| Tax effect of capital gains |
| 732 |
0.0 |
| — |
— |
| Transfer from other comprehensive income |
| — |
— |
| 2 337 |
0.3 |
| Tax charge |
| 143 805 |
5.5 |
| 197 955 |
23.1 |
| Effective tax rate |
| 5.5% |
|
| 23.1% |
|
|
