IGO Interactive Annual Report 2018

Notes to the consolidated financial statements 30 June 2018 (continued) 5 Income tax (a) Income tax expense 2018 $'000 2017 $'000 The major components of income tax expense are: Deferred income tax expense 26,380 9,406 Current income tax expense - - Income tax expense 26,380 9,406 Deferred income tax revenue (expense) included in income tax expense comprises: Decrease (increase) in deferred tax assets 23,039 (29,247) Increase in deferred tax liabilities 3,341 38,653 Deferred income tax expense 26,380 9,406 (b) Amounts recognised directly in equity 2018 $'000 2017 $'000 Deferred income tax benefit (expense) related to items charged or credited to other comprehensive income or directly to equity: Recognition of hedge contracts 765 104 Business-related capital allowances - (2,258) Income tax expense reported in equity 765 (2,154) (c) Numerical reconciliation of income tax expense to prima facie tax payable 2018 $'000 2017 $'000 Profit from continuing operations before income tax expense 79,066 26,417 Tax expense at the Australian tax rate of 30% (2017: 30%) 23,720 7,925 Tax effect of amounts which are not deductible (taxable) in calculating taxable income: Share-based payments 897 51 Non-deductible costs associated with acquisition of subsidiary - 1,173 Other non-deductible items 1 - Adjustment to tax cost base of asset on acquisition of subsidiary (11,038) - Impairment of tax losses previously recognised 14,032 - Non-assessable gain on disposal of subsidiary (1,341) - Capital losses not brought to account - 84 Previously unrecognised capital losses brought to account (86) - Difference in overseas tax rates 46 46 Overseas tax losses not brought to account 126 126 Adjustments for current tax of prior periods 23 1 Income tax expense 26,380 9,406 Independence Group NL 14 78 — IGO ANNUAL REPORT 2018 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 30 JUNE 2018