Tiger Brands | Annual Financial Statements 2022

Annual financial statements

Taxation

COMPANY				GROUP
2022	2021		(R'million)	2022	2021
		9	Taxation
(12,8)	(2,7)	9.1	South African current taxation	(836,4)	(627,0)
(11,3)	(7,0)		Withholding and foreign taxes	(126,7)	(146,3)
(24,1)	(9,7)			(963,1)	(773,3)
			Deferred taxation – temporary differences	(64,5)	127,8
0,2	–		Deferred taxation – tax rate adjustment	8,3	–
(23,9)	(9,7)			(1 019,3)	(645,5)
			Adjustments in respect of previous years
(0,1)	–		– Current taxation	2,8	8,1
			– Deferred taxation	1,3	0,8
(24,0)	(9,7)			(1 015,2)	(636,6)
			Taxation on impairments and non-operational items
			– Current	(7,9)	(0,9)
			– Deferred	3,6	40,8
(24,0)	(9,7)			(1 019,5)	(596,7)
%	%	9.2	The reconciliation of the effective rate of taxation with the statutory taxation rate is as follows:	%	%
0,6	0,5		Taxation for the year as a percentage of income before taxation	26,0	24,9
			Impairment of goodwill and intangibles	–	0,3
–	–		Tax rate adjustment	0,2	–
28,4	27,7		Dividend income	0,2	0,2
(0,9)	(0,5)		Expenses and provisions not allowed for taxation¹	(0,7)	(1,4)
–	–		Additional investment allowances	(0,4)	0,7
–	–		Adjustments in respect of previous years	0,1	0,4
(0,3)	(0,3)		Withholding taxes	(0,6)	(0,8)
–	–		Income from associates	3,4	4,0
–	–		Effect of differing rates of foreign taxes	(0,2)	(0,3)
0,2	0,6		Other sundry adjustments²	–	–
28,0	28,0		Rate of South African company taxation	28,0	28,0
			Tax effect of current year losses available to reduce future taxable income	–	–
		9.3	Reconciliation of movement on deferred taxation
			Movement recognised in the income statement for the year
			Current year charge	(64,5)	127,8
0,2	–		Tax rate adjustment	8,3	–
			Adjustments in respect of previous years	1,3	0,8
			Deferred tax on impairments and non-operational items	3,6	40,8
0,2	–			(51,3)	169,4

¹	Consists of legal fees, industrial investment allowance provision and expenses related to dividend income.
²	Includes impairments of receivables and investments.