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for the year ended 30 June
NOTES TO THE GROUP FINANCIAL STATEMENTS continued
8. INTEREST EXPENSE
Interest paid on borrowings (302) (483)
Preference share dividends (220) (290)
Imputed interest on loans payable (18) (19)
Transfer from hedging reserve (47) (8)
Fair value of derivative financial instruments 8 –
Tax authorities (8) –
Capitalised to property, plant and equipment 21 81
2010
Rm
2009
Rm
(566) (719)
9. SHARE OF ASSOCIATE’S LOSS
Share of TCN loss for the period (3) –
On 19 August 2009, a 29% stake in TCN was acquired for R96 million.
The year end for TCN is 31 December and this is in the process of being changed to align with the
group’s reporting date.
On 26 May 2010, the group increased its shareholding in TCN to 49% and has consolidated the
subsidiary from this date (refer to note 28.5).
10. TAX
Normal tax – South African (372) (485)
– foreign (4) (15)
(376) (500)
Current tax – current year (474) (512)
– prior years 71 15
Deferred tax – current year 20 10
– prior years 7 (13)
STC (72) (100)
CGT – 2
Other taxes (4) (13)
(452) (611)
Estimated tax losses not recognised 23 53
Unutilised STC credits 55 37
% %
Reconciliation of rate of tax
Standard rate – South African 28.0 28.0
Adjusted for:
Exempt income and disallowable expenses 11.5 11.4
Tax losses – (1.6)
Foreign tax rate variations 1.2 0.6
Prior year over-provisions (7.0) (0.2)
STC 6.4 7.6
CGT – (0.2)
Other taxes 0.4 1.0
Effective tax rate
40.5 46.6
159