IGO Interactive Annual Report 2018

Notes to the consolidated financial statements 30 June 2018 (continued) 5 Income tax (continued) (d) Reconciliation of carry forward tax losses and income tax paid 2018 $'000 2017 $'000 Tax effected balances at 30% Carry forward tax losses at the beginning of the year 198,571 166,506 Tax losses arising (recouped) from current year (3,844) 32,065 Income tax paid during the year - - Impairment of tax losses (14,032) - Carry forward tax losses at the end of the year 180,695 198,571 Effective income tax rate based on income tax paid -% -% (e) Deferred tax assets and liabilities Balance Sheet Profit or loss Equity Disposal of Subsidiary 2018 $'000 2017 $'000 2018 $'000 2017 $'000 2018 $'000 2017 $'000 2018 $'000 2017 $'000 Deferred tax liabilities Capitalised exploration expenditure (3,915) (13,285) (8,729) (7,108) - - (641) - Mine properties (121,034) (115,721) 14,212 42,451 - - (8,899) - Deferred gains and losses on hedging contracts (597) (197) - (1,544) 400 301 - - Trade debtors (2,606) (6,906) (3,226) 2,974 - - (1,074) - Consumable inventories (1,905) (2,514) 750 814 - - (1,359) - Other (1,581) (1,280) 334 1,066 - - (33) - Gross deferred tax liabilities (131,638) (139,903) 3,341 38,653 400 301 (12,006) - Deferred tax assets Property, plant and equipment 514 17,965 2,766 3,405 - - 14,685 - Deferred losses on hedged commodity contracts - 365 - 1,543 365 (197) - - Business-related capital allowances 3,593 5,509 1,916 2,056 - (2,258) - - Provision for employee entitlements 1,738 4,740 1,851 (2,086) - - 1,151 - Provision for rehabilitation 18,380 21,813 (391) (1,905) - - 3,824 - Mining information - 715 172 307 - - 543 - Carry forward tax losses 180,695 198,571 17,876 (32,065) - - - - Other 2,351 1,751 (1,151) (502) - - 551 - Gross deferred tax assets 207,271 251,429 23,039 (29,247) 365 (2,455) 20,754 - Deferred tax expense (benefit) 75,633 111,526 26,380 9,406 765 (2,154) 8,748 - Independence Group NL 15 IGO ANNUAL REPORT 2018— 79 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 30 JUNE 2018