2006 20-F - Sappi

SAPPI
NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS (Continued)
for the year ended September 2006
12. DEFERRED TAXATION (Continued)
Unrecognised deferred taxation assets
The unrecognised deferred taxation assets relate to the following:
2006 2005
US$ million
Deductible temporary differences.................................................. 65 72
Taxation losses.................................................................. 254 222
319 294
The unrecognised deferred taxation assets are split as follows by country of origin:
2006 2005
US$ million
Belgium..................................................................... 6 16
United Kingdom.............................................................. 69 67
United States of America...................................................... 198 171
Swaziland.................................................................... 22 36
Austria...................................................................... 24 4
319 294
The unrecognised taxation losses for the United States of America expire in 2021 to 2026. The
remaining unrecognised taxation losses do not have an expiry date as at September 2006.
The following table shows the movement in the unrecognised deferred taxation assets for the year
2006 2005
US$million
Balance at beginning of year .................................................. (294 ) (101)
Unrecognised deferred taxation assets originating during the current year .......... (25 ) (177)
Rate adjustments............................................................ — 1
Transfer from current taxation ................................................ — (19)
Movement in foreign exchange rates ........................................... — 2
Balance at end of year........................................................ (319 ) (294)
F-54