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83
Qantas Annual Report 2006
Notes to the Financial Statements
for the year ended 30 June 2006
4. Income Tax
Qantas Group Qantas
2006
$M
2005
$M
2006
$M
2005
$M
RECOGNISED IN INCOME STATEMENT
Current income tax expense
Current year 190.9 170.1 129.4 103.0
Adjustments for prior years (1.2) 1.8 (1.8) 0.8
189.7 171.9 127.6 103.8
Deferred income tax expense
Origination and reversal of temporary differences 22.6 109.3 62.6 107.1
Adjustments for prior years (21.9) (56.9) (23.9) (9.7)
Benefit of tax losses recognised 0.8 0.7 0.8 0.7
1.5 53.1 39.5 98.1
Total income tax expense in Income Statement 191.2 225.0 167.1 201.9
Comprising:
Australian income tax expense 189.6 221.1 167.1 201.9
Overseas income tax expense 1.6 3.9 ––
191.2 225.0 167.1 201.9
NUMERICAL RECONCILIATION BETWEEN INCOME TAX EXPENSE
AND PRE-TAX NET PROFIT
Profi t before related income tax expense 671.2 914.3 559.1 725.8
Income tax using the domestic corporate tax rate of 30% 201.4 274.3 167.8 217.8
Add/(less) adjustments for:
Non-assessable income
– Deferred lease benefits –0.1 –0.1
– Tax offset for franked dividends received (8.9) (7.2) (4.3) (3.0)
– Non-taxable dividends (1.4) –(1.2) –
– Share of associates’ and jointly controlled entities’ net profit (1.5) (0.5) ––
– Utilisation of previously unrecognised losses (14.5) –(14.5) –
– Other non-assessable income (0.6) (0.8) (0.4) (0.6)
Non-deductible expenditure
– Amortisation of lease residual values 1.0 1.8 2.1 1.8
– Write-down of investments 6.3 2.2 6.9 16.9
– Other non-deductible expenditure 12.1 15.8 5.5 14.9
Other (deductible)/assessable items (1.5) (0.8) 7.0 14.9
Tax consolidation benefit due to reset tax values of depreciable assets –(52.1) –(52.1)
Tax consolidation benefit due to recognition of previously unbooked tax losses –(9.6) –(9.6)
(Over)/under provision in prior years (1.2) 1.8 (1.8) 0.8
Income tax expense on pre-tax net profi t 191.2 225.0 167.1 201.9
DEFERRED INCOME TAX RECOGNISED DIRECTLY IN EQUITY
Current income tax expense
Other financial (assets)/liabilities (11.4) –(11.4) –
Deferred income tax expense
Relating to revaluation of property, plant and equipment 0.8 –––
Other financial (assets)/liabilities (8.2) –(8.2) –
(18.8) –(19.6) –