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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
Annual Report 2016 73
Notes to the consolidated financial statements
30 June 2016
(continued)
5 Income tax (continued)
(b) Amounts recognised directly in equity
2016
$'000
2015
$'000
Deferred income tax benefit (expense) related to items charged or credited to other
comprehensive income:
Recognition of hedge contracts
173
1,074
Income tax expense reported in equity
173
1,074
(c) Numerical reconciliation of income tax expense to prima facie tax payable
2016
$'000
2015
$'000
(Loss) profit from continuing operations before income tax expense
(59,212)
109,961
Tax (benefit) expense at the Australian tax rate of 30% (2015: 30%)
(17,764)
32,988
Tax effect of amounts which are not deductible (taxable)
in calculating taxable income:
Share-based payments
(1,378)
(318)
Non-deductible costs associated with acquisition of subsidiary
19,234
-
Other non-deductible items
17
296
Previously unrecognised capital losses brought to account
(721)
(52)
Difference in overseas tax rates
20
42
Overseas tax losses not brought to account
56
116
Adjustments for current tax of prior periods
94
110
Income tax (benefit) expense
(442)
33,182
59,654
(143,143)
(d) Reconciliation of carry forward tax losses, income tax paid and effective income tax rate
2016
$'000
2015
$'000
Tax effected balances at 30%
Carry forward tax losses at the beginning of the year
92,958
110,299
Tax losses arising (recouped) from current income tax benefit (expense)
17,529
(17,341)
Tax losses acquired through business combination
56,019
-
Income tax paid during the year
-
-
Carry forward tax losses at the end of the year
166,506
92,958
Effective income tax rate
-%
-%
Independence Group NL
45