| Previously STC was provided for at a rate of 10% on the amount by which dividends declared exceeded dividends received in the specified dividend cycle. The deferred taxation asset was raised in 2011 and was utilised in 2012. The asset was released as a taxation expense when dividends were declared.
The deferred taxation liability decreased mainly due to the shorter taxation write-off periods on property, plant and equipment that was previously utilised and add back of employee related provisions.
Deferred taxation realised on foreign operations relates to the foreign exchange losses on the disposal of Multi-Links Telecommunications Ltd.
Deferred tax assets are recognised for deductible temporary differences to the extent of the related tax benefit through future taxable profits is probable. The Group did not recognise deferred tax assets of R3,200 million (2012: RNil million) in respect of temporary differences amounting to R11,300 million that can be carried forward against future taxable income. |
