2012 Integrated report - Sappi

Notes to the group annual financial statements
for the year ended September 2012
US$ million
2012 2011
Assets Liabilities Assets Liabilities
11. Deferred tax
Other liabilities, accruals and prepayments (55) 25 (62) 24
Inventory 4 3 3 3
USA alternative minimum tax credit carry forward 18 – 16 –
Tax loss carry forward 203 25 279 38
Property, plant and equipment (72) (262) (98) (276)
Plantations (28) (125) (22) (136)
Other non-current assets 63 – 10 –
Other non-current liabilities 21 15 (81) 11
Negative asset and liability positions
154 (319) 45 (336)
These balances reflect the impact of tax assets and liabilities arising in different tax jurisdictions, which cannot be netted against tax
assets and liabilities arising in other tax jurisdictions.
Deferred tax assets recognised on the balance sheet
The recognised deferred tax assets relate mostly to available unused tax losses. It is expected that there will be sufficient future taxable
profits against which these losses can be recovered. In the estimation of future taxable profits, future product pricing and production
capacity utilisation are taken into account.
Unrecognised deferred tax assets
Deferred tax assets arising from unused tax losses are not recognised for carry forward when it cannot be demonstrated that it is
probable that taxable profits will be available against which deductible temporary differences can be utilised.
US$ million 2012 2011
Unrecognised deferred tax assets relate to the following:
Other non-current liabilities – 91
Tax losses 645 562
Property, plant and equipment – 22
645 675
Attributable to the following tax jurisdictions:
Belgium 86 86
The Netherlands 18 17
Finland 42 50
Switzerland – 30
United States of America – 158
Swaziland 29 34
South Africa 1 1
Austria 469 299
645 675
Expiry between two and five years 40 29
Expiry after five years 67 174
Indefinite life 538 472
645 675
126