Directors' Report and Financial Statements 31 March ... - Precision Air

PRECISION AIR SERVICES PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2012
PRECISION AIR SERVICES PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH
2012
21 TAXATION (Continued)
(d) Reconciliation of tax expense to tax based on accounting profit:
Accounting profit before tax 1,840,653 1,555,524 2,231,877 2,159,194
Tax applicable rate of 30% 552,196 466,657 669,563 647,758
Tax effect on non taxable/non deductible items
Alternate minimum tax charge - - - -
Disallowable expenses 654,660 226,321 356,193 226,320
Tax expense/(credit) 1,206,856 692,978 1,025,756 874,079
(e)
Final Tax assessments
The normal procedure for agreeing final income tax liability in Tanzania involves the company
filing its final income tax returns with the Tanzania Revenue Authority (TRA) followed by TRA
performing their own review of the company’s submissions and issuing their notice of final
income tax assessments to the company. The final income tax assessment may be determined
by TRA after their review and possible site visit may differ from the assessments determined
by the Company and procedures are in place for the company to object and appeal against
the TRA assessments. It is common that a timeframe from the Company’s own submission
of its final tax returns and for TRA performing their reviews and issuing of notice of final tax
assessment may take several months or years.
The Company has duly submitted its final tax returns for all previous years including 2011, with
the final assessments for years prior to 2009 settled with the TRA.
The Company has received from TRA notices for the final assessments up to year 2008 which
indicates tax losses of TZS 23,558,059,000 which has been agreed by the Company. Final
assessments by TRA for financial years 2009 ,2010 ,2011 and 2012 have not been communicated
to the Company by TRA.
The Company’s final tax return for the financial year ended 31 March 2012 is not yet due until
30 September 2012 however, no liability are envisaged by management due to the tax loss
position brought forward from previous years.
22 SHARE CAPITAL
Authorised:
242,000,000 Ordinary Shares of TZS 20/= each
(2011: 242,000,000 Ordinary Shares of TZS 20/=
each)
4,840,000 4,840,000 4,840,000 4,840,000
52
DIRECTORS’ REPORT AND FINANCIAL STATEMENTS 31 MARCH 2012