69 / 100
7 I n c om e t a x
Consolidated
2015
$’000
2014
$’000
(a) Income tax expense
Profit subject to income tax
418
1,221
Income tax at 28%
117
342
Deferred tax reversal
(3,183)
-
Tax refund on bonus issue
-
(1,924)
Income tax credit
(3,066)
(1,582)
(b) Tax credits available for use in subsequent reporting periods
Maori authority tax credits
134
32
134
32
Movements
Balance at 1 April
32
1,956
Maori authority credits attached to dividends received
102
-
Bonus issue distribution
-
(1,924)
Balance at 31 March
134
32
The tax credit account represents the Group’s consolidated income tax group. The Maori authority tax credits of $1.9m were
surrendered and cash was paid in 2014.
(c) Unrecognised deferred tax balances
Unused tax losses
2,042
2,043
Unrecognised deferred tax balances
2,042
2,043
Due to the charitable status of the entities within the Group the profit subject to income tax is lower that profit before tax in
Statement of Comprehensive Income. The taxable members of the Group have sufficient losses to carry forward to meet any
potential income tax liability. The taxable losses are not recorded in the financial statements due to the lack of probability that
the losses will be recovered.
(d) Deferred tax liabilities
The balance comprises temporary differences attributable to:
Property, plant and equipment
-
3,183
Net deferred tax liability
-
3,183
Deferred tax is in respect of Hamilton Riverview Hotel Limited’s property plant and equipment which has been assessed on the
basis of the asset value being realised through sale. Following the change in treatment of profits earned by Hamilton Riverview
Hotel, it is expected that the deferred tax liabilities will not be payable in the future, hence the deferred tax liability has been
derecognised (see note 30).
67
waikato-tainui
annual report 2015