NOTES TO THE FINANCIAL STATEMENTS
SECTION A How the numbers are calculated CONTINUED
2019 ($000’s)
2018 ($000’s)
For the year ended 30 June
RECONCILIATION OF SURPLUS BEFORE TAXATION TO INCOME TAX EXPENSE Surplus before taxation
32,688
36,032
Tax at the New Zealand tax rate of 28% (2018: 28%)
9,153
10,089
Tax effect of amounts which are either non-deductible or taxable in calculating taxable income: Non-taxable income/non-deductible expenses
36
(1,176)
Utilisation of tax losses for current/prior periods
(18)
(36)
Foreign tax credits foregone
-
39
Other
(59)
(40)
Income tax expense
9,112
8,876
COMPONENTS OF INCOME TAX EXPENSE Current tax charge
11,760
9,692
Foreign tax credits foregone
-
39
Movement in deferred tax
(2,648)
(855)
Income tax expense 8,876 At 30 June 2019 Airways has imputation credits available for use in subsequent reporting periods of $35.2 million (2018: $29.5 million). Deferred tax Deferred tax assets and liabilities are offset on the face of the balance sheet. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends to either settle on a net basis or to realise the asset and settle the liability simultaneously. The components of deferred tax are set out below: Depreciation ($000’s) Provisions ($000’s) Other ($000’s) Total ($000’s) Balance as at 1 July 2018 (15,533) 7,186 2 (8,345) Deferred tax in respect of previous years - 76 - 76 Deferred tax charged to net surplus 1,238 1,368 (35) 2,571 Deferred tax on items charged to other comprehensive income - - 35 35 Balance as at 30 June 2019 (14,295) 8,630 2 (5,663) 9,112
Balance as at 1 July 2017
(15,623)
6,754
2
(8,867)
Deferred tax charged to net surplus
90
432
333
855
Deferred tax on items charged to other comprehensive income
–
–
(333)
(333)
Balance as at 30 June 2018 (8,345) Airways Training Limited (ATL) has unrecognised tax losses of $0.795 million (2018: $0.861 million) which cannot be offset against the income of other members of the Group. The Group has no other unrecognised tax losses. (15,533) 7,186 2
42
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