TPCC Annual Report 2008.indd - HeidelbergCement

Tanzania Portland Cement Company Ltd, Annual Report 2008
30. Taxation
TZS ‘000 2008 2007
Tax expense
Current year tax 11,813,742 14,159,269
Prior year taxes 87,153 300,433
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11,900,895 14,459,702
Deferred tax charge 3,329,735 (989,725)
Reconciliation of tax expense to tax based on accounting profit:
15,230,630 13,469,977
Accounting profit before taxation 50,192,950 43,581,562
Tax applicable rate of 30% 15,057,885 13,074,469
Additional tax assessed for previous years 87,153 300,433
Tax effect on non taxable/non deductible items
Disallowable expenses 85,592 95,075
Tax expense 15,230,630 13,469,977
Deferred Taxation
Accelerated depreciation for tax purposes 32,850,411 21,099,415
Provision for employee benefits (1,116,878) (465,000)
General provision - -
31,733,533 20,634,415
Deferred tax liability thereon at 30% 9,520,060 6,190,325
Prior year taxes - -
Less: Opening deferred tax liability (6,190,325) (7,180,050)
Deferred tax (release)/expense 3,329,735 (989,725)
Tax (recoverable)/payable
Tax payable brought forward 806,525 (953,369)
Tax charge for the year 11,813,742 14,159,269
Prior year taxes 87,153 300,433
Tax payments during the year (11,742,413) (12,699,808)
Tax (recoverable)/payable 965,007 806,525
31. Employees
The number of employees at the end of the year was 345 (2007: 312).
32. Comparative figures
Previous year’s balances have been regrouped whenever appropriate for comparison purposes.