Note 11
For The Year Ended 31 March 2012
|
INCOME TAX EXPENSE
|
|
|
|
|
|
|
|
|
GROUP |
PARENT |
|
|
2012 |
2011 |
2012 |
2011 |
| Recognised in the income statement |
$000 |
$000 |
|
|
|
|
|
|
| Profit before income tax |
|
170,943 |
157,775 |
181,384 |
162,346 |
| Tax on profit @ 28% (2011:30%) |
|
47,864 |
47,333 |
50,788 |
48,704 |
| Foreign tax rate adjustment |
|
(254) |
- |
- |
- |
| Tax effect of non-assessable revenue |
|
(4,114) |
(4,309) |
973 |
648 |
| Income tax over provided in prior year |
|
(2,174) |
(3,599) |
(1,748) |
(1,031) |
| Removal of tax depreciation on buildings |
|
- |
11,079 |
- |
9,691 |
| Adjustment to tax depreciation on buildings |
|
(2,031) |
- |
(2,182) |
- |
| Change in corporate income tax rate |
|
- |
- |
|
|
39,291 |
45,406 |
47,831 |
55,213 |
| Represented by: |
|
|
|
|
|
| Current tax |
|
46,298 |
32,758 |
50,980 |
44,431 |
| Deferred tax |
28 |
(7,007) |
(3,149) |
| |
|
39,291 |
45,406 |
47,831 |
55,213 |
| |
|
The 28% tax rate used above is the corporate tax rate payable by New Zealand corporate entities on taxable profit under New Zealand tax law.
The 2010 Budget contained two provisions which had a material effect on the Group’s 2011 tax expense:
A decrease in the corporate income tax rate from 30 per cent to 28 per cent, effective from the income tax year ending 31 March 2012. As a result of this change, deferred tax was restated to 28 per cent in 2011, as deferred tax is required to be recorded at the tax rate that will apply when the future tax liability is expected to crystallise. See note 14 for impact on revaluation reserve.
The removal of tax depreciation on buildings with estimated useful lives of 50 years or more. TrustPower will no longer be able to claim tax depreciation on buildings from its income tax year ending 31 March 2012. This resulted in an increased deferred tax liability in respect of buildings completed before May 2010. This estimate was revised in the current year.
|
|
|
|
|
|
|