Annual Report - AWB Limited

Notes to and forming part of the financial statements for the year ended 30 September 2008 AWB LIMITEDConsolidatedAWB Limited2008 2007 2008 2007$’000 $’000 $’000 $’0003. Income Tax Expense(a) Income tax expenseCurrent Tax 67,109 57,491 20,972 11,404Deferred Tax (38,427) (26,416) 1,995 (1,526)Under/(over) provided in prior years 1 (9,999) (6,130) (10,912) (384)18,683 24,945 12,055 9,494Income tax expense is attributable to:Profit from continuing operations 18,683 24,945 12,055 9,494Total income tax expense 18,683 24,945 12,055 9,494Deferred income tax (revenue)/expense included in income tax expense comprises:Decrease/(increase) in deferred tax assets (note 13) (36,849) (20,939) 355 (895)(Decrease)/increase in deferred tax liabilities (note 18) (1,578) (5,477) 1,640 (631)(38,427) (26,416) 1,995 (1,526)1 Included in this line is the receipt of foreign tax credits in relation to the prior year.(b) Numerical reconciliation of income tax expense to prima facie tax payableProfit from continuing operations before income tax expense 84,006 52,500 79,700 49,893Tax at Australian tax rate of 30% 25,202 15,750 23,910 14,968Tax effect of amounts which are not deductible (taxable) in calculating income:Share of net profits from associates (6,494) (2,874) - -Franking credits on dividends received (7) (16) - -Amortisation of intangible assets 1,920 2,878 - 1,752Depreciation of buildings - (425) - (425)Depreciation of plant and equipment not allowed for tax (46) 416 - -Foreign tax credits (38) (179) - (108)Under/(over) provision of previous year (8,065) (4,312) (10,914) (72)Tax rate differential on foreign entities (6,638) (6,962) - -Increase/(decrease) in value of investments 4,552 (468) 1,654 (698)Attributable income of foreign entities 21 15,766 (6,069) 15,745Non assessable capital gain 88 - - -Non assessable debt recoveries (651) (620) (651) (620)Non-deductible legal and consulting 8,711 1,078 - -Tax consolidation intra group transactions - 3,352 3,911 1,219Other items (net) 128 1,562 214 48118,683 24,945 12,055 32,242Unrecognised Subsidiary losses available to head company - - - (22,748)Income tax expense 18,683 24,945 12,055 9,494www.awb.com.au 69