Corporate Report for the year ended 30 June 2022
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Section B: Notes to the Group financial statements for the year ended 30 June 2022
Section B: Notes to the Group financial statements for the year ended 30 June 2022
B7 Income tax (continued) Deferred tax assets and liabilities
Assets
Liabilities
2022
2021
2022
2021
$M
$M
$M
$M
The balance comprises temporary differences attributable to: Provisions
489 738 543
441 630 529
(15)
(16)
Current and prior year losses
—
—
Fixed assets/intangibles
(1,536)
(1,627)
Concession fees and promissory notes Derivatives and foreign exchange
—
—
(274) (288)
(342)
237
253
(90)
Lease liabilities
7
5
—
—
Equity accounted investments
— 27
— 18
(846)
(764)
Other
1
—
Tax assets/(liabilities)
2,041
1,876
(2,958)
(2,839)
Set-off of tax
(1,126)
(1,045)
1,126
1,045
Net tax assets/(liabilities)
915
831
(1,832)
(1,794)
Movements: Opening balance at 1 July Credited to profit or loss Credited/(charged) to equity
1,876
2,502
(2,839)
(2,633)
61 11 — — —
72
165
141
(106)
(176)
70 —
Disposed through other comprehensive income 1
(13) (96)
— — —
Disposed through profit or loss 1
326
Acquired 1
—
(764)
Foreign exchange movements
7 8
(54)
(87)
23
Transfer from deferred tax assets/liabilities
(8)
(8)
8
Current year losses recognised/(prior year losses utilised) and under/(over) provision in prior years
78
(421)
(13)
(10)
Closing balance at 30 June
2,041 2,041
1,876 1,876
(2,958) (2,958)
(2,839) (2,839)
Deferred tax assets/(liabilities) to be recovered/(paid) after more than 12 months
1. Relates to the net impact of the deconsolidation of the Group’s ownership interest in TC and recognition of an equity accounted investment in TC upon divestment of a 50% ownership interest (refer to Note B24). The Group has reviewed its deferred tax assets with reference to the potential impact of reductions in traffic due to COVID-19, near-term interest rates and inflation on forecast taxable profits. Management have determined that it is probable that future taxable profits will be available to utilise against deferred tax assets recognised as at 30 June 2022. The Group has no unrecognised tax losses as at 30 June 2022 (2021: $23 million tax effected). Accounting policy The income tax expense/(benefit) for the period is the tax payable or benefit on the current period's taxable income based on the applicable income tax rate for each jurisdiction, adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the Group operates and generates taxable income. Management periodically evaluate positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. They establish provisions where appropriate on the basis of amounts expected to be paid to the tax authorities. The Transurban Group comprises two corporate entities (THL and TIL) and a trust (THT). THT operates as a flow-through trust, and is not liable to pay tax itself. Instead, security holders pay tax on the distributions they receive from the trust at their individual marginal tax rates. The Group is structured in this way because the initial heavy capital investment and associated debt funding required for infrastructure investments results in accounting losses being generated in the initial years which would otherwise prevent a company from paying dividends. The trust enables distributions to be made to security holders throughout the life of the asset.
139 139
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