Landcorp - Crown Ownership Monitoring Unit

Note 32 – DividendsParent Parent Parent Parent2010 2009 2010 2009Cents per share $000 $000Ordinary sharesInterim dividend – – – –Final dividend 8.0 10.4 10,000 13,000Total Dividends for Year 8.0 10.4 10,000 13,000A final dividend for 2010 of $18.0 million was declared in August 2010 (2009 $10.0 million). Under the Agreement Concerning Landcorp LandProtected From Sale $17.4 million of this dividend will be reinvested in Landcorp as redeemable preference shares, with the proceeds beinginvested in a subsidiary company that is holding land that is protected from sale (see Note 30). The balance will be paid to the shareholders.Redeemable preference shares are not eligible to participate in dividend payments.Note 33 – Non-cash TransactionsUnder the Agreement Concerning Landcorp Land Protected from Sale, Landcorp’s dividend payments are diverted to pay for the Crown’s purchaseof redeemable preference shares (see Note 30). During 2009/10 Landcorp declared (from 2008/09 profits) a dividend of $10 million (2009$13 million). The cash payment for this dividend was offset against the payment from the Crown for the purchase of 10 million $1 redeemablepreference shares (2009 13 million shares). As no cash flows occurred, this transaction has not been recognised in the Statement of Cash Flows.Note 34 – Income TaxA – INCOME TAX EXPENSETax expense/(income) recognised for the year was:Group Group Parent Parent2010 2009 2010 2009$000 $000 $000 $000Current tax expense/(income)Current tax expense/(income) for year (10,612) (9,279) (8,800) (5,708)Adjustments to prior year 6,379 170 5,419 (254)Effect on recognised tax losses due to change in income tax rate 3,727 – 3,098 –(506) (9,109) (283) (5,962)Deferred tax expense/(income)Temporary differences 5,040 (3,458) 1,683 (3,814)Adjustments to prior year – – – –Effect on deferred tax balances due to change in income tax rate (1,066) – (1,003) –3,974 (3,458) 680 (3,814)Total Income Tax Expense/(Income) 3,468 (12,567) 397 (9,776)85