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NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS
CONTINUED
For the year ended 31 May 2014
170
BLUE LABEL INTEGRATED ANNUAL REPORT 2014
2014
R’000
2013
R’000
10.
DEFERRED TAXATION (continued)
Deferred tax asset comprises:
Capital allowances
(344)
(876)
Provisions
(10 999)
(17 066)
Tax losses
(20 057)
(10 947)
Other
(2 525)
(2 351)
Total deferred tax asset
(33 925)
(31 240)
Deferred tax liability comprises:
Capital allowances
770
791
Fair value gains
37 730
13 308
Prepayments
2 330
1 802
Unrealised foreign exchange differences
7 535
6 056
Other
2 418
2 693
Total deferred tax liability
50 783
24 650
Net deferred tax liability/(asset)
16 858
(6 590)
The analysis of deferred tax assets and deferred tax liabilities is as follows:
Deferred tax assets
Deferred tax assets to be recovered after more than 12 months
96
(6 159)
Deferred tax assets to be recovered within 12 months
(24 748)
(12 373)
Net deferred tax asset
(24 652)
(18 532)
Deferred tax liabilities
Deferred tax liabilities to be recovered after more than 12 months
28 758
10 542
Deferred tax liabilities to be recovered within 12 months
12 752
1 400
Net deferred tax liability
41 510
11 942
Net deferred tax liability/(asset)
16 858
(6 590)
Where deferred tax assets have been recognised in respect of entities which have incurred losses in the
current or prior years, a formal process of assessment of the future profitability of the entity has been
performed based on detailed budgets and cash flow forecasts. As a result, management believes that the
current tax losses will be utilised within one to five years.
Deferred tax assets are recognised for tax losses carried forward to the extent that the realisation of the
related tax benefit through future taxable profits is probable. The Group did not recognise deferred income
tax assets of R37.1 million (2013: R33.2 million) in respect of losses amounting to R132.6 million (2013:
R118.5 million) that can be carried forward against future taxable income.
There is no withholding tax that would be payable on any dividends received from the Group’s associates and
joint ventures and therefore no deferred tax has been raised in this regard.