NOTES TO THE FINANCIAL STATEMENTS CONTINUED
The Group Parent Entity
2007
$
2006
$
2007
$
2006
$
NOTE 6 — AUDITORS’ REMUNERATION
Audit services:
Auditors of the Company — KPMG Australia
Audit and review of financial reports
Other assurance services
Overseas KPMG firms
Audit and review of financial reports
858,091
40,856
412,612
903,296
40,063
405,534
314,886
—
—
348,104
—
—
1,311,559 1,348,893 314,886 348,104
Other services:
Auditors of the Company — KPMG Australia
Income tax compliance
Income tax consolidation regime advice
Indirect tax compliance advice
169,976
—
135,990
183,763
23,720
59,512
94,075
—
13,830
116,372
23,270
—
305,966 266,995 107,905 139,642
Overseas KPMG firms
International income tax compliance
Indirect tax compliance advice
Revenue certificates compliance
Other taxation services
126,883
49,300
3,446
117,284
159,970
100,675
10,666
54,899
—
—
—
—
—
—
—
—
296,913 326,210 — —
602,879 593,205 107,905 139,642
$’000 $’000 $’000 $’000
NOTE 7 — TAXATION
(a) Income tax expense
The major components of income tax expense are:
Income Statement
Income tax expense reported
Income tax attributable to discontinued operations
19,928
333
17,547
(712)
126
—
4,696
—
20,261 16,835 126 4,696
Current income tax
Current income tax expense/(benefit)
Adjustments in respect of current income tax of previous years
Deferred income tax
Relating to origination and reversal of temporary differences
16,638
328
3,295
17,792
(368)
(589)
(1,851)
76
1,901
4,499
—
197
Income tax expense reported in the Income Statement 20,261 16,835 126 4,696
Statement of Changes in Equity
Deferred income tax related to items charged or credited
directly to equity
Net (gain)/loss on revaluation of cash flow hedges
Unrealised gain on available-for-sale investments
Reversal of available-for-sale investments revaluation
reserve on realisation of investment
Adjustment to share-based payments reserve
Net loss/(gain) on hedge of net investment in overseas subsidiaries
(279)
(2,701)
4,776
18
5
191
(1,702)
1,211
—
(273)
—
(650)
861
18
—
—
(1,407)
1,211
—
—
Income tax benefit/(expense) reported in equity 1,819 (573) 229 (196)
The Group Parent Entity
2007 2006 2007 2006
$’000 $’000 $’000 $’000
NOTE 7 — TAXATION (CONTINUED)
Reconciliation between tax expense and pre-tax profit
A reconciliation between tax expense and accounting profit before income
tax multiplied by the Group’s applicable income tax rate is as follows:
Profit before tax from continuing operations 93,931 76,604 14,259 17,019
Profit/(Loss) before tax from discontinued operations 8,501 (261) — —
Accounting profit before income tax expense 102,432 76,343 14,259 17,019
Prima facie income tax expense calculated at the Group’s statutory
income tax rate of 30% on the accounting profit 30,730 22,903 4,278 5,105
Increase in income tax expense due to:
Depreciation and amortisation of buildings 677 648 — —
Share of non-deductible items in partnerships’
income tax 227 35 — —
Tax losses of non-resident controlled entity not carried forward
as deferred tax asset 4,095 5,473 — —
Capital losses not recognised or utilised 1,358 96 — —
Non-refundable franking credits grossed up 1,137 1,184 — —
Dividends from equity accounted associates 1,833 2,765 — —
Net higher overseas tax rate 217 266 — —
Sundry items — — 221 84
9,544 10,467 221 84
Decrease in income tax expense due to:
Franking credits on dividends received 1,164 575 639 267
Franking credits on dividends received from equity accounted
associates 2,625 3,949 — —
Share of associates’ net profit 7,901 7,698 — —
Capital profits offset by capital losses 8,329 2,374 1,156 516
Capital losses recognised or utilised — — 2,654 (290)
Notional interest on deferred settlement — 177 — —
Adjustment of deferred tax balances — 164 — —
Sundry items 655 518 — —
20,674 15,455 4,449 493
Income tax under/(over) provided in prior year 328 (368) 76 —
Income tax expense reported 19,928 17,547 126 4,696
Income tax attributable to discontinued operations (excluding gain on sale) 333
(712) — —
20,261 16,835 126 4,696
(b) Current tax liabilities
Provision for current income tax
Movements during the year:
Balance at the beginning of the year 6,299 7,869 6,857 7,784
Income tax paid (18,733) (19,720) (17,576) (18,635)
Current year income tax provided 16,581 17,967 (1,851) 4,473
Current year’s income tax provision in respect of controlled entities
taken up by Parent Entity — — 16,809 12,481
Tax refunds received 208 726 208 726
Under/(over) provision in prior year 424 (543) 76 28
4,779 6,299 4,523 6,857
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