| |
|
2020
R’m |
|
2019
R’m |
|
|
|
|
|
|
|
| Current income tax |
|
|
|
|
|
| |
Current year |
|
538 |
|
990 |
|
| |
Prior year underprovision |
|
41 |
|
25 |
|
| Deferred income tax |
|
|
|
|
|
| |
Origination and reversal of temporary differences |
|
(64) |
|
(270) |
|
| |
Prior year under/(over) provision |
|
27 |
|
(5) |
|
| |
Withholding taxes |
|
1 |
|
95 |
|
| Total tax expense |
|
543 |
|
835 |
|
| Reconciliation of the tax rate |
|
% |
|
% |
|
| South African normal tax rate |
|
28.00 |
|
28.00 |
|
| Adjustments for non-cash items: |
|
|
|
|
|
| |
Income not taxable – profit on sale of property, plant and equipment and investments |
|
(0.02) |
|
(9.83) |
|
| |
Income not taxable – partnerships |
|
(0.89) |
|
(0.36) |
|
| |
Expenses not deductible – impairment of intangible assets and investment |
|
27.48 |
|
0.28 |
|
| |
Expenses not deductible – interest on preference shares |
|
1.39 |
|
1.15 |
|
| |
Expenses not deductible – interest on borrowings and acquisition costs |
|
4.16 |
|
0.48 |
|
| |
Expenses not deductible – retirement benefit revaluation |
|
4.03 |
|
0.23 |
|
| |
Other2 |
|
3.18 |
|
(1.32) |
|
| |
Deferred tax through other comprehensive income |
|
0.80 |
|
0.56 |
|
| |
Prior year underprovision |
|
8.13 |
|
0.81 |
|
| |
Withholding taxes |
|
0.20 |
|
2.57 |
|
| |
Assessed losses previously not recognised |
|
(1.84) |
|
(1.67) |
|
| |
Effect of conversion of international tax rates to South Africa normal tax rate |
|
18.87 |
|
1.62 |
|
| Effective rate |
|
93.49 |
|
22.52 |
|
| 2 |
Other include various permanent differences in foreign tax jurisdictions and South Africa for which there are no corresponding tax allowances as well as learnership allowances. |
The Group has raised deferred tax on estimated tax losses of R791 million (2019: R622 million) available to offset against future taxable income. Refer note 14. Tax losses of R228 million (2019: R64 million) were utilised during the year.