Directors' Report and Financial Statements 31 March ... - Precision Air
Directors' Report and Financial Statements 31 March ... - Precision Air
Directors' Report and Financial Statements 31 March ... - Precision Air
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PRECISION AIR SERVICES PLC<br />
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)<br />
FOR THE YEAR ENDED <strong>31</strong> MARCH 2012<br />
Alternate minimum tax charge - - - -<br />
Balance at <strong>31</strong> <strong>March</strong> 53,649 118,649 53,649 118,649<br />
(b)<br />
Income tax expense<br />
Current year tax<br />
Alternate minimum tax<br />
Deffered tax charge/(credit)<br />
- - - -<br />
- - - -<br />
1,206,856 692,978 1,025,756 874,079<br />
1,206,856 692,978 1,025,756 874,079<br />
Section 4(1) (a) of the income tax Act 2004 as amended requires corporations with perpetual<br />
loss status for three consecutive years on income as a result of tax investments to pay tax at<br />
the rate of 0.3% of the annual turnover of the third year in the period in which the corporation<br />
is in a loss. The company made tax profit for the current year ended <strong>31</strong> <strong>March</strong> 2012; hence,not<br />
liable to alternate minimum tax charge in year 2012.<br />
(c)<br />
Deffered tax<br />
Deffered tax liability<br />
Accelerated depreciation for<br />
tax purposes 134,167,613 133,834,557 134,167,613 133,771,579<br />
Revaluation surplus 10,930,996 10,930,996 10,930,996 10,930,996<br />
145,098,609 144,765,553 145,098,609 144,702,575<br />
Deffered tax liability thereon at<br />
25% (2011:30%) 36,274,652 43,429,666 36,274,652 43,410,772<br />
Deffered tax asset<br />
Leave accrual (253,126) (638,268) (253,126) (638,268)<br />
Cashflow hedging reserve (24,639,502) (14,543,635) (24,639,502) (14,543,635)<br />
General impairment of<br />
receivables (1,249,870) (864,597) (1,249,870) (864,597)<br />
Tax losses (110,545,3<strong>31</strong>) (117,<strong>31</strong>9,700) (110,545,3<strong>31</strong>) (116,653,053)<br />
(136,687,829) (133,366,201) (136,687,829) (132,699,554)<br />
Deffered tax asset thereon at<br />
25% (2011:30%) (34,171,957) (40,009,860) (34,171,957) (39,809,866)<br />
Net deffered tax liability 2,102,695 3,419,806 2,102,695 3,600,906<br />
Less: Opening net deffered tax<br />
liability 3,419,806 5,478,844 3,600,906 5,478,844<br />
Deffered tax release (1,<strong>31</strong>7,111) (2,059,038) (1,498,211) (1,877,938)<br />
Charged to:<br />
Income statement 1,206,856 692,978 1,025,756 874,079<br />
Equity (2,523,967) (2,752,016) (2,523,967) (2,752,016)<br />
(1,<strong>31</strong>7,111) (2,059,038) (1,498,211) (1,877,938)<br />
DIRECTORS’ REPORT AND FINANCIAL STATEMENTS <strong>31</strong> MARCH 2012<br />
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