NOTES TO THE FINANCIAL STATEMENTS
Note 3: Income Tax The income tax expense for the year comprises current income tax expense and deferred tax expense. Current income tax expense charged to the profit and loss is the tax payable on taxable income. Current tax liabilities are measured at the amounts expected to be paid. Deferred income tax expense reflects movements in deferred tax asset balances during the year. Deferred tax expense is charged outside the profit and loss where the tax relates to items that are recognised outside the profit and loss. The charge for current income tax expense is based on the profit for the year adjusted for any non-assessable or disallowed items.
(a) The major components of income tax expense are
2021 $
2020 $
Consolidated Statement of Profit or Loss
Current income tax: Current income tax charge Deferred tax: Deferred Tax on losses utilised
210,588
128,053
-
-
Relating to temporary differences
25,132
85,030
Income tax expense reported in the Consolidated Statement of Profit or Loss
235,720
213,083
(b) Reconciliation of tax expense and the accounting profit multiplied by Australia’s domestic tax rate for 2021 and 2022
2021 $
2020 $
Accounting profit before income tax
904,708
844,074
Income tax at Australia’s statutory rate of 26% (2020: 27.5%)
248,795
219,459
Tax effect of: Non-deductible and (assessable) expenses for tax purposes
(13,075)
(6,376)
Income tax reported in the Consolidated Statement of Profit or Loss
235,720
213,083
(c) Tax Losses The Group does not have any deferred income tax losses at 30 June 2021.
(d) Tax Assets
Non-Current
Deferred Tax Asset
105,809
190,839
105,809
190,839
GO VITA GROUP LIMITED ANNUAL REPORT 2020-2021 I 49
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