Telstra 2007 Annual Report Download - page 152

Telstra Corporation Limited and controlled entities
149
Notes to the Financial Statements (continued)
(a) The Commonwealth statutory income tax rate for fiscal 2007 and
fiscal 2006 was 30%. This tax rate is the income tax rate applied to
Australian resident companies pursuant to the Income Tax Rates Act.
9. Income taxes
Telstra Group Telstra Entity
As at 30 June As at 30 June
2007 2006 2007 2006
$m $m $m $m
Major components of income tax expense
Current tax expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,643 1,731 1,764 1,861
Deferred tax result ing from the origination and reversal of temporary differences. . . (228) (386) (243) (411)
Under provision of tax in prior years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236 (9) 33
1,417 1,381 1,512 1,483
Notional income tax expense on profit differs from
actual income tax expense recorded as follows:
Profit before income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,692 4,564 4,950 4,722
Notional income tax expense on profit calculated at 30% (a): . . . . . . . . . . . . . . . . 1,408 1,369 1,485 1,417
Which is adjusted by the tax effect of:
Effect of different rates of tax on overseas income . . . . . . . . . . . . . . . . . . . . . . . (30) (19) --
Non assessable and non deductible items . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 (5) 36 33
Under provision of tax in prior years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236 (9) 33
Income tax expense on profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,417 1,381 1,512 1,483
Amounts recognised directly in equity during the year
Deferred tax debited directly in equity during the year . . . . . . . . . . . . . . . . . . . . 15 291 13 289