 |
18.1 |
Taxation
expense |
|
|
| |
|
South African
normal tax |
|
|
| |
|
Current tax |
(203) |
(139) |
| |
|
Current
year |
(187) |
(136) |
| |
|
Prior
years |
(16) |
(3) |
| |
|
Deferred tax |
(4) |
(13) |
| |
|
Current
year |
(20) |
(13) |
| |
|
Prior
years |
16 |
—
|
| |
|
Foreign
tax |
|
|
| |
|
Current tax |
(34) |
(4) |
| |
|
Current
year |
(26) |
(7) |
| |
|
Prior
years |
(8) |
3 |
| |
|
Deferred tax |
32 |
(22) |
| |
|
Current
year |
(8) |
(22) |
| |
|
Prior
years |
40 |
—
|
| |
|
Withholding
taxes |
(4) |
(2) |
| |
|
Secondary
tax on companies |
(7) |
(10) |
| |
|
|
(220) |
(190) |
| |
|
No
material capital gains tax was incurred
by the group in the current or previous
year. |
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|
| |
18.2 |
Tax rate
reconciliation of taxation expense |
|
|
| |
|
The effective tax
rate of the group on adjusted profit
before tax is set out below: |
|
|
| |
|
Profit before taxation
per income statement |
295 |
657 |
| |
|
Adjusted
for: |
|
|
| |
|
Impairment charges
and other capital gains and losses |
19 |
21 |
| |
|
Reported loss arising
from accounting for policyholder investments
as treasury shares |
81 |
30 |
| |
|
Provisions for
client settlements |
468 |
— |
| |
|
Net fair value
gain (offset by tax expense attributable
to policyholders) |
(18) |
(9) |
| |
|
Share of net
profits of associates (stated net
of taxation) |
(17) |
(5) |
| |
|
Adjusted
profit before taxation (a) |
828 |
694 |
| |
|
Taxation
expense (b) |
(220) |
(190) |
| |
|
Effective
tax rate (a)/(b) |
26,6% |
27,4% |
| |
|
|
% |
% |
| |
|
A reconciliation
of the normal South African tax rate
for companies compared with that charged
in the income statement is set out
below: |
|
|
| |
|
Normal tax rate |
29,0 |
30,0 |
| |
|
Increase
in rate of tax due to: |
|
|
| |
|
Secondary tax on
companies |
0,8 |
1,4 |
| |
|
Withholding taxes |
0,5 |
0,3 |
| |
|
Unutilised tax
losses (net of prior year assessed
losses utilised) |
— |
0,4 |
| |
|
Exempt income (net
of disallowed expenditure) |
4,0 |
— |
| |
|
Decrease
in rate of tax due to: |
|
|
| |
|
Disallowed expenditure
(net of exempt income) |
— |
(3,0) |
| |
|
Foreign tax rate
adjustment |
(3,9) |
(1,7) |
| |
|
Prior years overprovision |
(3,8) |
— |
| |
|
Effective tax rate
on adjusted profit before taxation
(as above) |
26,6 |
27,4 |
| |
|
Adjusted
for the effects of: |
|
|
| |
|
Impairment charges
and other capital gains and losses. |
0,6 |
0,8 |
| |
|
Reported loss from
accounting for policyholder investments
as treasury shares |
3,0 |
1,3 |
| |
|
Provisions for
client settlements |
54,5 |
— |
| |
|
Net fair value
gain (offset by tax expense attributable
to policyholders) |
(5,5) |
(0,4) |
| |
|
Share of net
profits of associates (stated net
of taxation) |
(4,6) |
(0,2) |
| |
|
Effective tax
rate on profit before taxation (per
income statement) |
74,6 |
28,9 |
| |
|
|
Rm |
Rm |
| |
18.3 |
Tax attributable
to policyholders’ funds |
|
|
| |
|
Taxation expense
of policyholder fund of multi-manager
investment companies operating under
limited life insurance licences. |
|
|
| |
|
Current tax |
(5) |
— |
| |
|
Deferred tax |
(13) |
(9) |
| |
|
Policyholder
fund tax expense |
(18) |
(9) |
| |
|
The
taxation expense attributable to policyholders’
funds is offset by an equivalent net
fair value gain attributable to policyholders
as reflected on a separate line in
the income statement. |
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|
