Telstra 2008 Annual Report Download - page 138

Telstra Corporation Limited and controlled entities
135
Notes to the Financial Statements (continued)
9. Income taxes
Telstra Group Telstra Entity
As at 30 June As at 30 June
2008 2007 2008 2007
$m $m $m $m
Major components of income tax expense
Current tax expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,471 1,643 1,583 1,764
Deferred tax resulting from the origination and reversal of temporary differences . . . 6(228) 38 (243)
(Over)/under provision of tax in prior years . . . . . . . . . . . . . . . . . . . . . . . . . . . (48) 2(78) (9)
1,429 1,417 1,543 1,512
Notional income tax expense on profit differs from
actual income tax expense recorded as follows:
Profit before income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,140 4,692 5,360 4,950
Notional income tax expense calculated at the Australian tax rate of 30%: . . . . . . . 1,542 1,408 1,608 1,485
Which is adjusted by the tax effect of:
Effect of different rates of tax on overseas income. . . . . . . . . . . . . . . . . . . . . . . (21) (30) --
Non assessable and non deductible items . . . . . . . . . . . . . . . . . . . . . . . . . . . . (44) 37 13 36
(Over)/under provision of tax in prior years . . . . . . . . . . . . . . . . . . . . . . . . . . . (48) 2(78) (9)
Income tax expense on profit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,429 1,417 1,543 1,512
Income tax recognised directly in equity during the year. . . . . . . . . . . . . . . . . . . (33) 28 (74) 13