Rangatira Annual Report 2025 - Flipbook - Page 45
Annual Report 2025
Note 5 Taxation
Accounting policy
Current and deferred tax is recognised as an expense or income through profit or loss, except when it relates to
items recognised in other comprehensive income or directly to equity, in which case the deferred tax or current
tax is also recognised in other comprehensive income or directly in equity.
Current Tax
Current tax is calculated by reference to the amount of income taxes payable or recoverable in respect of the
taxable profit or tax loss for the period.
Deferred Tax
Deferred tax is recognised in respect of temporary differences between the carrying amount of assets and
liabilities in the financial statements and the values used for taxation purposes.
In principle, deferred tax liabilities are recognised for all taxable temporary differences. A deferred tax asset is
recognised only to the extent it is probable it will be utilised.
2025
$000
2024
$000
Profit before tax
98,444
18,007
Prima facie tax at 28%
27,564
5,042
Income tax recognised in profit or loss:
Tax effects of temporary differences
1,103
338
Non deductible expenditure
Tax effects of different jurisdictions
(3,200)
1,396
Non assessable income
(23,287)
(677)
Gain on sale of disposal
-
(2,625)
Imputation credits offset
(1,297)
(853)
Prior period adjustment
(1,959)
(1,681)
Tax (benefit)/expense
(1,076)
940
Current tax
Prior period adjustment
Deferred tax
Imputation credit account balance for the year
1,605
3,657
(1,959)
(1,469)
(722)
(1,248)
(1,076)
940
2,862
4,175
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