Qantas 2016 Annual Report Download - page 66

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Notes to the Financial Statements continued
For the year ended 30 June 2016
2016
$M
2015
$M
RECONCILIATION BETWEEN INCOME TAX EXPENSE AND STATUTORY PROFIT BEFORE INCOME TAX
Statutory profit before income tax expense 1,424 789
Income tax expense using the domestic corporate tax rate of 30 per cent (427) (237)
Adjusted for:
Non-assessable dividends from controlled entities 110
Non-deductible share of net loss for investments accounted for under the equity method –(14)
Non-deductible losses for foreign branches and controlled entities (6) (7)
Utilisation of previously unrecognised foreign branch and controlled entity losses 6 5
Utilisation of previously unrecognised capital losses 8 –
Non-assessable gain on disposal of property, plant and equipment 30 –
Write-down of investments –(2)
Other net non-assessable/(non-deductible) items 7(4)
(Under)/over provision from prior periods (14) 20
Income tax expense (395) (229)
RECOGNISED IN THE CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Cash flow hedges (2) 21
Defined benefit actuarial (losses)/gains 89 (15)
Income tax benefit recognised directly in the Consolidated Statement of Comprehensive Income 87 6
Income tax payable was less than 30 per cent of the Qantas Group’s Statutory Profit Before Tax due to:
–Utilisation of carry forward tax losses that reduce taxable income of $413 million (2015: $117 million)
–Temporary differences of ($18 million) (2015: $112 million) which result in differences between taxable income which will reverse
in future periods and Statutory Profit Before Tax, such as accelerated tax depreciation on aircraft (timing difference due to the
Qantas Group making a significant investment in renewing its fleet in recent years that will reverse in future tax periods)
2016
$M
2015
$M
RECONCILIATION OF INCOME TAX EXPENSE TO INCOME TAX PAYABLE
Income tax expense (395) (229)
Adjusted for temporary differences
Inventories 1(1)
Property, plant and equipment and intangible assets 18 247
Payables (28) 2
Revenue received in advance (64) (25)
Interest-bearing liabilities (16) (14)
Other financial assets/(liabilities) 40 (49)
Provisions (26) 41
Other items 49 (97)
Prior period differences 8 8
Temporary differences (18) 112
Tax losses utilised 413 117
Income tax payable – –
5 INCOME TAX CONTINUED
64
QANTAS ANNUAL REPORT 2016