(7a) Income tax
Income tax for the profit or loss for the financial year comprises both current income tax payable or recoverable for the reporting period and the movement in deferred income taxes.
Income taxes are recognised in the statement of profit or loss unless they relate to items recognised in the statement of comprehensive income.
The income tax owed or refundable over the financial year is the expected tax payable on the taxable income for the financial year, using tax rates enacted or substantively enacted on the reporting date, as well as adjustments to tax payable in respect of previous years.
Additional income tax that arises from the distribution of dividends is recognised at the same time as the liability to pay the related dividend is recognised.
(7b) Deferred tax
Deferred tax assets and liabilities are recognised in respect of available tax loss carry-forwards and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes, and the values used for taxation purposes. Deferred tax assets and liabilities are not recognised to the extent that they arise from the initial recognition of goodwill or the initial recognition of assets or liabilities in a transaction that is not a business combination and that, at the time of the transaction, affects neither accounting profit nor taxable profit. The amount of the deferred tax assets and liabilities is based on the manner in which the expected asset and liability carrying amounts will be realised or settled, based on the income tax rates that have been enacted or substantively enacted on the reporting date.
Deferred tax assets and liabilities are offset if the Group has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to income taxes levied by the same tax authority on the same taxable entity, or by different taxable entities that intend to settle current tax positions on a net basis or to realise and settle them simultaneously.
A deferred tax asset (after offsetting against any deferred tax liability) is recognised to the extent that it is probable that future taxable profits will be available against which the asset can be utilised.
The amount of the deferred tax asset is reduced to the extent that it is no longer probable that the related tax benefit will be realised.