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what is Abacus Group Property's tax expense in its latest financial statements? Is this figure the same as the company tax rate times your firms
what is Abacus Group Property's tax expense in its latest financial statements? Is this figure the same as the company tax rate times your firms accounting income? Explain why this is, or is not, the case for your firm highlighting the reasons for differences.
ABACUS PROPERTY GROUP NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2019 3. EXPENSES (continued) 2019 $'000 2018 $'000 18,052 1,054 (d) Administrative and other expenses Wages and salaries Contrbutions to defined contribution plans Provisions Other expenses Total administrative and other expenses 17,319 938 4,647 10,982 33,886 12.471 31,577 4. INCOME TAX 2019 $'000 2018 $'o 49/106 (a) Income tax expense The major components of income tax expense are: Income Statement Current income tax Current income tax charge Acjustments in respect of current income tax of previous years Deferred income tax Relating to origination and reversal of temporary differences Income tax expense reported in the income statement 10,740 (970) 26.989 1,271 553 6,343 16,113 28,813 (b) Numerical reconciliation between aggregate tax expense recognised in the income statement and tax expense calculated per the statutory income tax rate A reconciliation between tax expense and the product of the accounting profit before income tax multiplied by the Group's applicable income tax rate is as follows: Profit before tax from continuing operations Profit before tax from discontinued operations Profit before income tax expense 208,720 1,840 210,560 272.183 3,588 275, 771 Prima facie income tax expense calculated at 30% (AU) Prima facie income tax expense calculated at 28% (NZI Loss prima facic income tax expense on profit from Trusts Prima Facie income tax of entities subject to income tax 62,305 805 (40.767) 22,343 81,774 893 (56 327) 26, 340 1271 7 3 899 Adjustment of prior year tax applied Unrecognised tax losses brought to account Stare of results of joint ventures and associates Security anquisition nights Otter toms (net) Income tax expense reported in the income statement (970) (69) (3471) (9199 1721) 16,113 (2.704) 28.813 ABACUS PROPERTY GROUP NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2019 4. INCOME TAX (continued) 2019 $ 000 2018 $'000 (c) Recognised deferred tax assets and liabilities Deferred income tax relates to the following: Deferred tax liabilities Revaluation of investment properties at far value Capital allowances Other Gross erre income tax liabilities Set off against deferred tax assets Net deferred income tax liabilities 16.695 1,691 5,601 23.987 (6,011) 17,976 10,675 1,978 2,209 4,860 (2,642) 12,218 6,045 8.949 3.270 Deferred tax assets Revaluation of investments and financial instruments at fair value Provisions - other Provisions - employee entitlements Derecognition of deferred tax asset losses - AHF) Losses available for offset against future taxable income Other Gross deferred Income tax assets Set off of deferred tax liablites Net deferred income tax assets 6,024 1,500 2,272 (607) 655 1,034 10,878 (2,642) 8,236 429 18,693 (6.011) 12,682 Tax consolidation AGHL and its 100% owned Australian resident subsidiaries, ASOL and its 100% owned Australian resident subsidiaries and AHL and its 100% owned Australian resident subsidiaries have formed separate tax consolidated groups. AGHL, ASOL and AHL are the head entity of their respective tax consolidated groups. The head entity and the controlled entities in the tax consolidated group continue to account for their own current and deferred tax amounts. These amounts are measured in a manner that is consistent with the broad principles in AASB 112 Income Taxes. The nature of the tax funding agreements are discussed further below. Nature of the tax funding agreement Members of the respective tax consolidated groups have entered into tax funding agreements. The tax funding agreements require payments to/from the head entity to be recognised via an inter-entity receivable (payable) which is at call. To the extent that there is a difference between the amount allocated under the tax funding agreement and the allocation under Interpretation 1052, the head entity accounts for these as equity transactions. The amounts receivable or payable under the tax funding agreements are due upon receipt of the funding advice from the head entity, which is issued as soon as practicable after the end of each financial year. The head entity may also require payment of interim funding amounts to assist with its obligations to pay tax instalments. ABACUS PROPERTY GROUP NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2019 3. EXPENSES (continued) 2019 $'000 2018 $'000 18,052 1,054 (d) Administrative and other expenses Wages and salaries Contrbutions to defined contribution plans Provisions Other expenses Total administrative and other expenses 17,319 938 4,647 10,982 33,886 12.471 31,577 4. INCOME TAX 2019 $'000 2018 $'o 49/106 (a) Income tax expense The major components of income tax expense are: Income Statement Current income tax Current income tax charge Acjustments in respect of current income tax of previous years Deferred income tax Relating to origination and reversal of temporary differences Income tax expense reported in the income statement 10,740 (970) 26.989 1,271 553 6,343 16,113 28,813 (b) Numerical reconciliation between aggregate tax expense recognised in the income statement and tax expense calculated per the statutory income tax rate A reconciliation between tax expense and the product of the accounting profit before income tax multiplied by the Group's applicable income tax rate is as follows: Profit before tax from continuing operations Profit before tax from discontinued operations Profit before income tax expense 208,720 1,840 210,560 272.183 3,588 275, 771 Prima facie income tax expense calculated at 30% (AU) Prima facie income tax expense calculated at 28% (NZI Loss prima facic income tax expense on profit from Trusts Prima Facie income tax of entities subject to income tax 62,305 805 (40.767) 22,343 81,774 893 (56 327) 26, 340 1271 7 3 899 Adjustment of prior year tax applied Unrecognised tax losses brought to account Stare of results of joint ventures and associates Security anquisition nights Otter toms (net) Income tax expense reported in the income statement (970) (69) (3471) (9199 1721) 16,113 (2.704) 28.813 ABACUS PROPERTY GROUP NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2019 4. INCOME TAX (continued) 2019 $ 000 2018 $'000 (c) Recognised deferred tax assets and liabilities Deferred income tax relates to the following: Deferred tax liabilities Revaluation of investment properties at far value Capital allowances Other Gross erre income tax liabilities Set off against deferred tax assets Net deferred income tax liabilities 16.695 1,691 5,601 23.987 (6,011) 17,976 10,675 1,978 2,209 4,860 (2,642) 12,218 6,045 8.949 3.270 Deferred tax assets Revaluation of investments and financial instruments at fair value Provisions - other Provisions - employee entitlements Derecognition of deferred tax asset losses - AHF) Losses available for offset against future taxable income Other Gross deferred Income tax assets Set off of deferred tax liablites Net deferred income tax assets 6,024 1,500 2,272 (607) 655 1,034 10,878 (2,642) 8,236 429 18,693 (6.011) 12,682 Tax consolidation AGHL and its 100% owned Australian resident subsidiaries, ASOL and its 100% owned Australian resident subsidiaries and AHL and its 100% owned Australian resident subsidiaries have formed separate tax consolidated groups. AGHL, ASOL and AHL are the head entity of their respective tax consolidated groups. The head entity and the controlled entities in the tax consolidated group continue to account for their own current and deferred tax amounts. These amounts are measured in a manner that is consistent with the broad principles in AASB 112 Income Taxes. The nature of the tax funding agreements are discussed further below. Nature of the tax funding agreement Members of the respective tax consolidated groups have entered into tax funding agreements. The tax funding agreements require payments to/from the head entity to be recognised via an inter-entity receivable (payable) which is at call. To the extent that there is a difference between the amount allocated under the tax funding agreement and the allocation under Interpretation 1052, the head entity accounts for these as equity transactions. The amounts receivable or payable under the tax funding agreements are due upon receipt of the funding advice from the head entity, which is issued as soon as practicable after the end of each financial year. The head entity may also require payment of interim funding amounts to assist with its obligations to pay tax instalments
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