Annual Report - JD Group

Notes to the Group annual financial statements continued
38
2004 2003
Rm Rm
6. Taxation
South African taxation
Normal – current 142,1 20,0
– prior 0,8 (3,1)
Deferred – current 178,3 143,6
– prior (0,9) –
Secondary taxation on companies (deferred) 29,2 5,5
349,5 166,0
Foreign taxation
Normal – current 4,6 –
– prior 0,9 1,3
Deferred – current (2,2) (9,8)
– prior 1,1 –
– rate adjustment – 2,5
Withholding and other – 0,1
4,4 (5,9)
Total taxation 353,9 160,1
Dealt with as follows
Current taxation 148,4 23,8
Deferred taxation 205,5 136,3
Total taxation 353,9 160,1
Reconciliation of taxation charge
Domestic standard normal rate of taxation (%) 30,0 30,0
Taxation at standard rate 343,2 182,4
Adjusted for
Foreign tax rate differential 1,6 2,2
Expenditure disallowed 32,1 3,3
Exempt income (92,3) (58,2)
Prior years 1,9 (3,1)
Deferred tax asset not raised 38,2 25,4
Secondary taxation on companies (included in deferred taxation) 29,2 5,5
Withholding taxes – 0,1
Rate adjustment – 2,5
Taxation charged to income 353,9 160,1
Effective rate of taxation (%) 30,9 26,3
Estimated tax losses available for set off against future taxable income
Tax losses available 419,8 331,5
Deferred tax assets not raised 243,3 98,2
Deferred tax assets raised 176,5 233,3
Tax effect at country rate of tax (note 13) 50,8 54,6
Deferred tax assets relating to tax losses of R243,3 million (2003: R98,2 million) have not been raised in accordance with Group policy
because the probability of utilising these losses in the foreseeable future is considered to be remote.