NOTE 6. INCOME TAX
CONSOLIDATED
2015
2014
$m
$m
A. INCOME TAX EXPENSE
Current tax
332
427
Deferred tax
(240)
51
(Over)/under provided in prior year
27
(6)
Income tax expense/(credit)
119
472
Deferred income tax expense/(credit) included in income tax comprises
(Increase)/decrease in deferred tax assets
(191)
(20)
Increase/(decrease) in deferred tax liabilities
(49)
71
(240)
51
B. INCOME TAX RECONCILIATION
The income tax for the financial year differs from the amount calculated on the profit/(loss)
before income tax. The differences are reconciled as follows:
Profit for the year before income tax
949
1,802
Income tax calculated at 30% (2014-30%)
285
541
Amounts which are not deductible/(taxable) in calculating taxable income
Difference in tax rate
(205)
(80)
Rebateable dividends
(9)
(6)
Amortisation and impairment charge on acquired intangible assets and goodwill
3
2
Interest on convertible preference shares and reset preference shares
5
5
Other
13
16
Income tax expense/(credit) applicable to current year
92
478
Adjustment relating to prior year
27
(6)
Income tax (credit)/expense attributable to profit/(loss) for the year after impact of tax
consolidation
119
472
C. DEFERRED TAX ASSETS
I. Composition
a. AMOUNTS RECOGNISED IN PROFIT
Property and equipment
75
66
Employee benefits
91
87
Insurance provisions
122
159
Investments
30
17
Tax losses
444
278
Other
11
23
773
630
b. AMOUNTS RECOGNISED DIRECTLY IN OTHER COMPREHENSIVE INCOME
Defined benefit superannuation plans
9
16
Other
-
6
782
652
c. AMOUNTS SET-OFF AGAINST DEFERRED TAX LIABILITIES
(283)
(328)
499
324
II. Reconciliation of movements
Balance at the beginning of the financial year
652
561
Credited/(charged) to profit or loss
191
20
Credited/(charged) to equity
(13)
(2)
Additions through business acquisition
-
60
Transfers
-
2
Adjustments relating to prior year
(23)
-
Foreign exchange differences
(25)
11
Balance at the end of the financial year prior to set-off
782
652
III. Tax losses
The Consolidated entity has an unrecognised deferred tax asset of $11 million (2014-$14 million) in relation to discontinued operation
tax losses.
64 IAG ANNUAL REPORT 2015
