Mainfreight Annual Report 2022

88 89
Notes to the FINANCIAL STATEMENTS
Notes to the FINANCIAL STATEMENTS
7 INCOME TAX (CONTINUED)
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax credits and unused
tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and
the carry-forward of unused tax credits and unused tax losses can be utilised, except:
• When the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of an asset
or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting
profit nor taxable profit or loss; or
• When the deductible temporary difference is associated with investments in subsidiaries, associates or interests in joint ventures,
in which case a deferred tax asset is only recognised to the extent that it is probable that the temporary difference will reverse in
the foreseeable future and taxable profit will be available against which the temporary difference can be utilised.
The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.
Unrecognised deferred income tax assets are reassessed at each balance sheet date and are recognised to the extent that it has
become probable that future taxable profit will allow the deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised
or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date.
Income taxes relating to items recognised directly in equity are recognised in equity and not in the income statement.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax assets against
current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same taxation authority.
Profit Before Taxation for the Year 489,381 262,407
Prima Facie Taxation at 28% NZ, 30% Australia, 27% USA, 16.5% Hong Kong, 25% China, 25% Europe 132,733 72,217
(31 March 2021 28% NZ, 30% Australia, 27% USA, 16.5% Hong Kong, 25% China, 25% Europe)
Adjusted by the Tax Effect of:
Prior Year Tax Adjustments - (286)
Non-deductible Expenses 1,251 2,366
AGGREGATE INCOME TAX EXPENSE 133,984 74,297
Current Tax 128,650 77,803
Deferred Tax 5,334 (3,506)
133,984 74,297
IMPUTATION CREDIT ACCOUNT
THE AMOUNT OF CREDITS AVAILABLE FOR USE IN SUBSEQUENT REPORTING PERIODS 61,984 66,505
2022
$000
2022
$000
2021
$000
2021
$000
7 INCOME TAX (CONTINUED)
Recognised Deferred Tax Assets and Liabilities
(i) Deferred Tax Assets
Balance Sheet
2022
$000
2021
$000
Income Statement
Doubtful Debts 956 1,025 67 (77)
Provisions:
Annual Leave 7,462 6,059 (1,440) (1,063)
Long Service Leave 4,288 3,717 (613) (681)
Bonuses 22,255 10,675 (11,628) (3,926)
Superannuation 10 5 (5) 11
Other 5,750 7,742 1,817 (459)
Lease NZ IFRS 16 7,119 4,920 (2,234) (1,878)
Unrealised FX Gains / Losses 175 146 (30) (280)
Foreign Exchange Impact - - (190) (930)
Gross Deferred Tax Assets 48,015 34,289
Set-off of Deferred Tax Liabilities 30,775 15,828
NET DEFERRED TAX ASSETS PER BALANCE SHEET 17,240 18,461
(ii) Deferred Tax Liabilities
Deferred Tax on Property, Plant & Equipment 41,438 22,361 19,607 6,343
Customer Lists 21 38 (17) (566)
Gross Deferred Tax Liabilities 41,459 22,399
Set-off of Deferred Tax Liabilities Against Assets 30,775 15,828
NET DEFERRED TAX LIABILITIES PER BALANCE SHEET 10,684 6,571
DEFERRED TAX (INCOME) / EXPENSE 5,334 (3,506)
8 DIVIDENDS PAID AND PROPOSED
RECOGNISED AMOUNTS
Declared and Paid During the Year to Parent Shareholders
Final Fully Imputed Dividend for 2021: 45.0 cents (2020: 34.0 cents) 45,314 34,237
Interim Fully Imputed Dividend for 2022: 55.0 cents (2021: 30.0 cents) 55,385 30,210
2022
$000
2022
$000
2021
$000
2021
$000
100,699 64,447
UNRECOGNISED AMOUNTS
Final Fully Imputed Dividend for 2022: 87.0 cents (2021: 45.0 cents) 87,608 45,314
After the balance date, the above unrecognised dividends were approved by Directors’ resolution dated 25 May 2022. These amounts
have not been recognised as a liability in 2022 but will be brought to account in 2023.