| 9 Taxation |
|
Group |
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Company |
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| |
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2017
Rm |
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|
2016
Rm |
|
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2017
Rm |
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|
2016
Rm |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
691 |
|
|
538 |
|
|
65 |
|
|
359 |
|
| South African normal company taxation |
|
|
713 |
|
|
574 |
|
|
65 |
|
|
359 |
|
| Current taxation |
|
|
903 |
|
|
586 |
|
|
256 |
|
|
371 |
|
| Overprovision for prior year |
|
|
(190) |
|
|
(12) |
|
|
(191) |
|
|
(12) |
|
| Deferred taxation (refer to note 17) |
|
|
(50) |
|
|
(15) |
|
|
– |
|
|
– |
|
| Capital allowances |
|
|
241 |
|
|
77 |
|
|
261 |
|
|
88 |
|
| Provision other allowances |
|
|
(307) |
|
|
(92) |
|
|
(261) |
|
|
(88) |
|
| Tax losses |
|
|
35 |
|
|
– |
|
|
– |
|
|
– |
|
| Acquisition of BCX |
|
|
(19) |
|
|
– |
|
|
– |
|
|
– |
|
| Withholding tax |
|
|
4 |
|
|
1 |
|
|
– |
|
|
– |
|
| Common control transaction |
|
|
24 |
|
|
(22) |
|
|
– |
|
|
– |
|
| The higher group taxation is mainly due to the prior financial year being lower as a result of reduced assessments issued to Telkom company,
the reversal of provisions and the higher taxable profits. |
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| Reconciliation of taxation rate |
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|
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|
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|
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| Effective rate |
|
|
15.20 |
|
|
18.8 |
|
|
1.4 |
|
|
12.2 |
|
| South African normal rate of taxation |
|
|
28.0 |
|
|
28.0 |
|
|
28.0 |
|
|
28.0 |
|
| Adjusted for: |
|
|
(12.8) |
|
|
(9.2) |
|
|
(26.6) |
|
|
(15.8) |
|
| Exempt income |
|
|
(3.1) |
|
|
(4.4) |
|
|
(14.0) |
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|
(9.9) |
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| Dividends received |
|
|
– |
|
|
– |
|
|
(0.9) |
|
|
(6.0) |
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| Profit on sale of disposal |
|
|
(0.8) |
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|
– |
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|
(10.7) |
|
|
– |
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| Other exempt income* |
|
|
(2.3) |
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|
(4.4) |
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|
(2.4) |
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|
(3.9) |
|
| Disallowable expenditure |
|
|
6.3 |
|
|
6.5 |
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|
3.8 |
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|
4.5 |
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| Capital expenditure |
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|
2.6 |
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|
– |
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|
0.8 |
|
|
2.0 |
|
| Other disallowed expenditure** |
|
|
3.7 |
|
|
6.5 |
|
|
3.0 |
|
|
2.5 |
|
| Foreign tax |
|
|
0.1 |
|
|
– |
|
|
– |
|
|
– |
|
| Deferred tax asset limitation*** |
|
|
(14.0) |
|
|
(10.2) |
|
|
(14.0) |
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|
(10.1) |
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| Recoupment |
|
|
0.3 |
|
|
– |
|
|
– |
|
|
– |
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| Common control transaction (refer to note 11) |
|
|
0.1 |
|
|
(0.8) |
|
|
– |
|
|
– |
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| Net overprovision for prior year |
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|
(2.5) |
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|
(0.3) |
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(2.4) |
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(0.3) |
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| * |
Other exempt income mainly consists of capital profit on sale of assets. |
| ** |
Other disallowable expenditure mainly includes professional fees and legal fees which are not tax deductible. |
| *** |
Deferred tax recognised as a result of the reassessment of the deferred tax asset. |
The current year lower effective tax rate is mainly due to the effect of the deferred tax asset limitation and the overprovision for tax relating to prior years.