18. Deferred taxation
  Group   Company  
  31 March 
2020 
Rm 		   31 March 
2019 
Rm 		   31 March 
2020 
Rm 		   31 March 
2019 
Rm 		  
   675     93     575     57    
Opening balance  93     313     57     317    
Profit or loss and opening balance movements  879     (158)    821     (193)   
   Capital allowances  (1 971)    (229)    (2 017)    (229)   
   IFRS 9 adjustment  –     (39)    –     (39)   
   Provisions and other allowances*  2 176     14     2 165     (6)   
   Tax losses  337     81     337     81    
   Overprovision prior year**  328     2     336     –    
   Other  –     2     –     –    
   Common control transactions/business combinations  9     11     –     –    
Other comprehensive income deferred tax impact  (297)    (67)    (303)    (67)   
Other equity movements  –     5     –     –    
The balance comprises:  675     93     575     57    
Capital allowances  (3 091)    (1 190)    (3 068)    (1 121)   
Provisions and other allowances*  3 763     1 328     3 530     1 099    
Business combination  (48)    (57)    –     –    
Common control transaction  (32)    (32)    –     –    
Tax losses  485     148     482     146    
Over provision prior year  3     3     –     –    
Other comprehensive income tax impact  (405)    (107)    (369)    (67)   
Deferred taxation balance is made up as follows:  675     93     575     57    
Deferred taxation assets  828     255     575     57    
Deferred taxation liabilities  (153)    (162)    –     –    
* The significant increase in provisions and other allowances is mainly attributable to once-off costs relating to the restructuring programme, the additional impairments due to COVID-19, the increase in provisions following the adoption of IFRS 9, implementation of IFRS 16, as well as in the prior year, the timing differences on mobile handset revenue resulted in a deferred tax liability.
** The overprovision for prior year deferred tax relates mainly to the reversal of the deferred tax liability recognised in prior years on one of the uncertain tax positions provided for in the current year.

The increase in the deferred tax asset is mainly attributable to the following:

  • The once-off costs that will give rise to future tax deductions;
  • The prior year overprovision of tax;
  • Current year tax losses and the adoption of IFRS 16 Leases which did not impact deferred tax in prior years due to the prospective application of the standard.

The deferred tax balance in the current year is reduced by an additional liability of R297 million (31 March 2019: R67 million) relating to the movement in other comprehensive income including actuarial gains recognised on the post-employment benefit plans, accounted for in other comprehensive income.