Our performance in 2009 - Sappi

2009 annual report
US$ million 2009 2008
11. Deferred tax continued
Reconciliation of deferred tax
Deferred tax balances at beginning of year
Deferred tax assets 41 60
Deferred tax liabilities (399) (385)
(358) (325)
Deferred taxation benefit (charge) for the year (refer to note 6) 41 (89)
Other liabilities, accruals and prepayments (6) (11)
Inventory 5 –
Utilisation of Secondary Tax on Companies (STC) credits (2) (7)
Tax loss carry forward 30 19
Property, plant and equipment (10) (37)
Plantations 18 (29)
Other non-current assets – (2)
Other non-current liabilities 6 (22)
Amounts recorded directly against equity 32 (1)
Rate adjustments 3 9
Translation differences (17) 48
Deferred tax balances at end of year (299) (358)
Deferred tax assets 56 41
Deferred tax liabilities (355) (399)
Secondary Tax on Companies (STC)
Current and deferred tax are measured at the tax rate applicable to undistributed
income and therefore only take STC into account to the extent that dividends have
been received or declared.
Undistributed earnings that would be subject to STC 465 895
Tax effect if distributed 42 81
Available STC credits at end of year – 2
131
financials