Air New Zealand 2010 Annual Report Download - page 18

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4. TAXATION EXPENSE
GROUP
2010
$M
GROUP
2009
$M
COMPANY
2010
$M
COMPANY
2009
$M
Current taxation expense
Current year (46) (45) 2 70
Adjustment for prior periods (6) 4 (8) 10
(52) (41) (6) 80
Deferred taxation expense
Origination and reversal of temporary differences 16 55 2 7
Impact of changes in depreciation on building assets ** (20) - (19) -
Reduction in tax rate * 15 - 8 -
11 55 (9) 7
Total taxation (expense)/credit recognised in earnings (41) 14 (15) 87
Reconciliation of effective tax rate
Profit before taxation 123 7 (30) (205)
Taxation at income tax rate (37) (2) 9 62
Adjustments
Non-deductible expenses (1) (1) (1) (1)
Non-taxable income 3 13 8 13
Impact of corporate tax rate change* 15 - 8 -
(Under)/over provided in prior periods (2) 4 (18) 10
Changes in depreciation on building assets ** (20) - (19) -
Other 1 - (2) 3
Taxation (expense)/credit (41) 14 (15) 87
* The New Zealand corporate income tax rate will reduce to 28% from the commencement of the 2012 income year. The impact of the tax rate change
included in the 2010 financial statements has been calculated based on the forecast deferred tax liability for Air New Zealand at 30 June 2011 (which
will be subject to a number of variables including foreign exchange movements).
** Tax deductions for depreciation on certain buildings with an estimated life of 50 years or more are not available from the start of the 2012 income
year. This adjustment reflects expected future depreciation deductions that can no longer be claimed.
IMPUTATION CREDITS
GROUP
2010
$M
GROUP
2009
$M
COMPANY
2010
$M
COMPANY
2009
$M
Balance at the beginning of the year 47 13 39 -
Taxation payments 16 74 16 74
Credits attached to distributions received - - 8 -
Credits attached to distributions paid (30) (32) (30) (32)
Other - (8) - (3)
Balance at the end of the year 33 47 33 39
AIR NEW ZEALAND
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR TO 30 JUNE 2010
16