Annual financial statements statement 2015
Supplement to the integrated annual report 30 June 2015
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GROUP FINANCIALS STATEMENTS

MENU Notes to the consolidated financial statements — for the year ended 30 June 2015

  1. Accounting policies
  2. Segment information
  3. Property, plant and equipment
  4. Exploration and evaluation assets
  5. Investment in equity-accounted entities
  6. Deferred tax
  7. Other financial assets
  8. Derivative financial instrument
  9. Prepayments
  10. Inventories
  11. Trade and other receivables
  12. Cash and cash equivalents
  13. Share capital
  14. Non-controlling interest
  15. Borrowings
  16. Other financial liabilities
  17. Sundry liabilities
  18. Provisions
  19. Trade and other payables
  20. Financial instruments and financial risk management
  21. Current tax
  22. Revenue
  23. Cost of sales
  24. Other operating income
  25. Other operating expenses
  26. Impairment
  27. Royalty (income)/expense
  28. Finance income
  29. Finance cost
  30. Other income
  31. Other expenses
  32. Income tax expense
  33. Earnings per share
  34. Dividends
  35. Cash generated from operations
  36. Contingent liabilities and guarantees
  37. Related-party transactions

32.  

Income tax expense  
    2015   2014  
    Rm   Rm  
 

Current tax  

    
  South African company tax   453   480  
  Current tax on profits for the year   466   488  
  Prior year adjustment   (13)  (8) 
  Other countries’ company tax   1 006   226  
  Current tax on profits for the year   81   85  
  Current additional profits tax   621   76  
  Prior year adjustment*   304   65  
  Total current tax   1 459   706  
       
 

Deferred tax  

    
  Temporary differences (note 6)  (1 873)  (565) 
  Prior year adjustment (note 6)  155   3  
  Change in tax rate (Zimbabwe corporate tax)  42   —  
  Total deferred tax   (1 676)  (562) 
 

Total income tax expense  

 (217)  144  
  The tax of the Group’s profit differs as follows from the theoretical charge that would arise using the basic tax rate of 28% for South African companies:      
 

Normal tax for companies on profit before tax  

 (1 220)  4  
  Adjusted for:      
  Disallowable expenditure:      
  Income tax interest and penalties   56   20  
  Unrealised share-based compensation expense   40   7  
  Finance cost accruals   86   26  
  Consulting fees   1   11  
  Fair value adjustments   5   36  
  Other   50   78  
  Disallowable income:      
  Profit on sale of assets   (51)  (32) 
  Other   (33)  (3) 
  Prior year adjustment   446   60  
  Change in tax rate (Zimbabwe corporate tax)  42   —  
  Deferred tax not recognised   3   8  
  Effect of after-tax share of profit from associates   (105)  (102) 
  Effect of different taxes of foreign subsidiaries   (151)  (45) 
  Additional profits tax   614   76  
 

Tax expense  

 (217)  144  
  The Group is subject to income taxes in numerous jurisdictions. Significant judgement is required in determining the provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Group recognises liabilities for anticipated tax audit issues based
on estimates of whether additional taxes will be due.  
  Where the final tax outcome of these matters is different from the amounts that were initially reported, such differences
will impact the income tax and deferred tax provisions in the period in which such determination is made.  
 

* Mainly prior years’ additional profit tax following failure of appeal to the Special Court of Appeal in Zimbabwe against the ZIMRA interpretation of the APT provisions.