2012 Annual Report - Domino's Pizza

10. INCOME TAXES
10.1 Income tax recognised in profit or loss
2012
$’000
2011
$’000
Income tax expense comprises:
Current tax expense in respect of the current year 9,946 7,374
Adjustments recognised in the current year in relation to the current tax of prior years (237) (87)
9,709 7,287
Deferred tax expense relating to the origination and reversal of temporary differences 987 1,159
Previously unrecognised and unused tax losses used to reduce current tax expense - (247)
Effect of deferred tax balances in New Zealand due to the change in income
tax rate from 30% to 28% (effective 4 July 2011) 12 34
Total tax expense relating to continuing operations 10,708 8,233
The expense for the year can be reconciled to the accounting profit as follows:
2012
$’000
2011
$’000
Profit from continuing operations 37,644 29,668
Income tax expense calculated at 30% 11,293 8,900
Effect of expenses that are not deductible in determining taxable profit 156 126
Other (deductible) amounts (63) (191)
Effect of different tax rates of subsidiaries operating in other jurisdictions (29) 18
Previously unrecognised and unused tax losses used to reduce current tax expense - (247)
Effect of tax concessions (research and development and other allowances) (405) (260)
Effect of deferred tax balances in New Zealand due to the change in income
tax rate from 30% to 28% (effective 4 July 2011) 12 34
Other (19) (60)
10,945 8,320
Adjustments recognised in the current year in relation to the current tax of prior years (237) (87)
Income tax expense recognised in profit or loss 10,708 8,233
The tax rate used for the 2012 and 2011 reconciliation above is the corporate tax rate of 30% payable by Australian corporate entities on taxable profits
under Australian tax law.
ANNUAL REPORT 2012 DOMINO’S PIZZA ENTERPRISES LIMITED 47