annual report 2011

IOOF | annual report 2011
Notes to the financial statements (cont’d)
For the year ended 30 June 2011
11 Income tax expense
Consolidated Parent
2011 2010 2011 2010
$’000 $’000 $’000 $’000
Current tax expense
Current period 39,317 31,122 1 (2,750)
Adjustment for prior periods (867) (128) (146) 15
38,450 30,994 (145) (2,735)
Deferred tax expense
Origination and reversal of temporary differences (529) (2,558) 291 748
Adjustments recognised in the current year in relation to the deferred tax (396) 2 (190) 207
of prior years
Recognition of tax losses and deferred tax balances - (179) - -
(925) (2,735) 101 955
Total income tax expense from continuing operations 37,525 28,259 (44) (1,780)
Income tax recognised directly in equity
Disposal of treasury shares
Before tax - 2,555 - -
Tax (expense)/benefit - (1,061) - -
Net of tax - 1,494 - -
Income tax recognised in other comprehensive income
Available-for-sale financial assets
Before tax 5,398 2,953 - -
Tax (expense)/benefit (1,866) (1,643) - -
Net of tax 3,532 1,310 - -
Reconciliation of the prima facie income tax expense on pre-tax profit
with the income tax expense charged in the Income statement
Profit before income tax 151,926 105,734 131,284 64,967
Life insurance revenue (85,260) (70,682) - -
Life insurance expense 71,649 73,821 - -
Shareholder profit before income tax 138,315 108,873 131,284 64,967
Prima facie income tax at the Australian tax rate of 30% 41,495 32,662 39,385 19,490
Tax effect of amounts which are not deductible/ (taxable) in calculating
taxable income:
Share of tax credits with benefit funds 1,520 2,260 - -
Recognition of deferred tax balances - (179) - -
Internal interest charge (109) (162) - -
(Non assessable income)/Non-deductible expenses 2,352 793 (38,974) (20,806)
Amortisation of deferred tax liability recorded on intangible assets (2,966) (3,822) - -
Share of net profits of associates (2,761) (2,276) - -
Assessable associate and subsidiary dividends 5,424 4,774 - -
Tax losses not recognised - (347) - -
Imputation credits (5,658) (5,234) - -
Other (509) (82) (119) (479)
Under/(over) provided in prior periods (1,263) (128) (336) 15
37,525 28,259 (44) (1,780)
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