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61
APN
annual report
2011
notes to the financial statements
APN News & Media Limited and Controlled Entities
5. INCOME TAX
2011
$’000
2010
$’000
Current tax expense
17,203
19,043
Deferred tax expense/(credit)
(57,396)
9,089
Adjustment for current tax of prior periods
507
(155)
Income tax expense/(credit)
(39,686)
27,977
Income tax is attributable to:
Profit/(loss) from continuing operations
(39,686)
30,061
Loss from discontinued operations
–
(2,084)
Aggregate income tax expense/(credit)
(39,686)
27,977
Income tax expense differs from the amount prima facie payable as follows:
Profit/(loss) from continuing operations before income tax expense
(58,622)
149,647
Loss from discontinued operations before income tax expense
–
(6,946)
(58,622)
142,701
Prima facie income tax at 30%
(17,587)
42,810
Tax effects of differences:
Difference in international tax treatments and rates
(21,528)
(16,502)
Impairment and reversals of impairment
643
(900)
Assets write downs and business closures
2,304
–
Fair value adjustment on acquisition of associate
(2,476)
–
Foreign exchange gains
(1,538)
–
Other
(11)
271
Prima facie tax adjusted for differences
(40,193)
25,679
Adjustment for current tax of prior periods
507
(155)
Impact of change in New Zealand tax rate
–
2,453
Income tax expense/(credit)
(39,686)
27,977
The Company is involved in a dispute with the New Zealand Inland Revenue Department regarding certain financing transactions. The dispute
involves tax of NZ$41 million for the period up to 31 December 2011. No assessments have been issued at this time and the Company is
satisfied that its treatment satisfies all relevant legislation and that no tax will become payable. The Company has tax losses available to offset
the amount payable to the extent of NZ$25 million. The IRD are seeking to impose penalties of between 10% and 50% of the tax in dispute in
addition to the tax claimed.