AWB Limited - 2003 Annual Report

4. TAXATION
Consolidated
AWB Limited
2003 2002 2003 2002
Notes $'000 $'000 $'000 $'000
(a) Income tax expense
The income tax expense for the year differs from the amount
calculated on the profit. The differences are reconciled as follows:
Prima facie income tax expense calculated at 30% on the profit
from ordinary activities 17,672 45,952 19,659 26,976
Tax effect of permanent differences:
Share of net profits from associates (628) (298) – –
Franking credits on dividends received (828) – (12,484) (18,729)
Research and development concessions (656) (737) (656) (737)
Amortisation of intangible assets 732 – – –
Depreciation of buildings 351 193 – –
Foreign tax credits (1,423) (38) (1,100) (38)
Under/(over) provision of previous year (2,535) (744) (2,063) 4,366
Tax rate differential on foreign entities 502 566 – –
Other items (net) 1,570 449 878 129
Income tax expense attributable to profit from ordinary activities 14,757 45,343 4,234 11,967
(b) Deferred tax assets and liabilities
Current tax assets 13,444 – – 9,934
Future income tax benefit 43,044 28,039 6,585 5,853
Current tax payable – 10,422 3,122 –
Provision for deferred income tax – non–current 10,554 19,141 6,125 6,595
This future income tax benefit will only be obtained if:
• future assessable income is derived of a nature and of an amount sufficient to enable the benefit to be realised;
• the conditions for deductibility imposed by tax legislation continue to be complied with; and
• no changes in tax legislation adversely affect the consolidated entity in realising the benefit.
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