Notes to the Company Annual Financial Statements | Note 13

ACCOUNTING POLICY

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.

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.

CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS

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 BLU to realise net deferred tax assets recorded at the end of the reporting period could be impacted.

The Directors resolved at the end of the prior and current financial year not to recognise the deferred tax asset. No income tax charge was recognised in the current or prior year.

No provision has been made for current tax as BLU has no taxable income. The estimated tax loss available for set off against future taxable income is R188 545 829 (2025: R183 390 423).