2012 Annual Report - Domino's Pizza

NOTES TO THE FINANCIAL STATEMENTS CONTINUED
10.5 Unrecognised deferred tax assets
The taxation benefits of tax losses and timing differences not brought to account will only be obtained if:
• assessable income is derived of a nature and of an amount sufficient to enable the benefit from the deductions to be realised;
• conditions for deductibility imposed by the law are compiled with; and
• no changes in tax legislation adversely affect the realisation of the benefit from the deductions.
At the end of the financial year, an aggregate deferred tax asset of $28,917 (2011: $31,694) was not recognised in relation to the revenue losses acquired
on acquisition of The Netherlands subsidiary where 50% of this will be transferred to Domino’s Pizza International Inc.. It is not considered probable that
there will be sufficient taxable profits against which the tax losses may be utilised before they expire. The revenue losses were incurred in the financial
years 30 June 2002 and 30 June 2003 and are due to expire in the financial year ended 1 July 2012.
10.6 Unrecognised taxable temporary differences associated with investments and interests
At the end of the financial year, an aggregate deferred tax liability of $4,288,002 (2011: $4,285,274) was not recognised in relation to investments in
subsidiaries as the parent Company is able to control the timing of the reversal of the temporary differences and it is not probable that the temporary
difference will reverse in the foreseeable future.
10.7 Tax consolidation
Relevance of tax consolidation to the Group
The Company and its wholly-owned Australian resident entities formed a tax-consolidated group with effect from 1 July 2003 and are therefore taxed as a
single entity from that date. The head entity within the tax-consolidated group is Domino’s Pizza Enterprises Limited. The members of the tax-consolidated
group are identified at note 17.
Nature of tax funding arrangements and tax sharing arrangements
The entities in the tax-consolidated group have not entered into a tax sharing agreement or tax funding agreement. Income tax liabilities payable to the
taxation authorities in respect of the tax-consolidated group are recognised in the financial statements of the parent entity.
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ANNUAL REPORT 2012 DOMINO’S PIZZA ENTERPRISES LIMITED