AWB Limited - 2004 Annual Report

4. TAXATION
Consolidated
AWB Limited
2004 2003 2004 2003
$'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 44,116 17,672 13,812 19,659
Tax effect of permanent differences:
Share of net profits from associates (2,543) (628) – –
Franking credits on dividends received (1,657) (828) – (12,484)
Research and development concessions (710) (656) 1,156 (656)
Amortisation of intangible assets 8,130 732 – –
Depreciation of buildings 463 351 – –
Foreign tax credits (2,261) (1,423) (2,261) (1,100)
Under/(over) provision of previous year (671) (2,535) (933) (2,063)
Tax rate differential on foreign entities 973 502 3,088 –
Attibutable income of foreign entities 4,552 3,338 4,552 3,338
Tax consolidation intragroup transactions – – (14,933) –
Other items (net) (990) (1,768) 603 (2,460)
Income tax expense attributable to profit from ordinary activities 49,402 14,757 5,084 4,234
(b) Deferred tax assets and liabilities
Current tax assets – 13,444 – –
Future income tax benefit
– Parent entity – – 5,264 6,585
– Entities in the tax consolidated group (i) 41,617 43,044 36,353 –
41,617 43,044 41,617 6,585
Current tax payable
– Parent entity – – 10,966 3,122
– Entities in the tax consolidated group (i) 37,198 – 26,232 –
37,198 – 37,198 3,122
Provision for deferred income tax – non–current
– Parent entity – – 296 6,125
– Entities in the tax consolidated group (i) 16,505 10,554 16,209 –
16,505 10,554 16,505 6,125
(i) Entities in the tax consolidated group have entered into a tax sharing agreement. Refer Note 1(f ) for further information.
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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