Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Income Tax Expense/ (Benefit)

v3.21.1
Income Tax Expense/ (Benefit)
12 Months Ended
Jan. 31, 2021
Income taxes [Abstract]  
Income Tax Expense/(Benefit)
13 Income Tax Expense/(benefit)

 

  (a) The major components of tax expense/(benefit) comprise:

 

    For the Year Ended 31
January 2021
NZ$000’s
   

For the Year

Ended 31

January 2020

NZ$000’s

   

For the Year Ended 31

January 2019

NZ$000’s

 
Current tax                        
Current tax on profits for the period     27       28       (667 )
Adjustments for current tax of prior periods     107       53       (607 )
Total current tax expense/(benefit)     134       81       (1,274 )
Deferred tax expense                        
Decrease in deferred tax assets (note 31)     -       701       -  
Income tax expense/(benefit) for continuing operations     134       782       (1,274 )

 

(b) Reconciliation of income tax to accounting profit:

 

Loss before income tax     (68,212 )     (53,523 )     (50,494 )
Tax at New Zealand tax rate of 28%     (19,099 )     (14,986 )     (14,138 )
Tax effect of:                        
- permanent differences (including impairment expense)     16,299       5,108       753  
- adjustments in respect of current income tax of previous years     107       32       (522 )
- effects of different tax rates of subsidiaries operating in other jurisdictions     (1 )     (301 )     493  
- deferred tax assets relating to the current year not brought to account     2,910       10,163       12,077  
- deferred tax assets relating to prior periods no longer recognised (note 31)     -       701       -  
- other     (12 )     65       63  
Income tax expense/(benefit)     134       782       (1,274 )

  

(c) Tax losses not recognised

 

    For the Year
Ended 31
January 2021
NZ$000’s
   

For the Year

Ended 31

January 2020

NZ$000’s

   

For the Year

Ended 31

January 2019

NZ$000’s

 
Unused tax losses for which no deferred tax asset has been recognised     177,275       166,882       130,587  
Potential tax benefit at 28%     49,637       46,727       36,564  

 

The Group has assessed future forecast profits and concluded that not enough criteria have been satisfied to recognise any deferred tax assets at the period ended 31 January 2020. Unused tax losses do not have an expiry date. During the period, the Group de-recognised all deferred tax assets on timing differences carried forward from prior years, amounting to $701,000 after accounting for exchange rate differences.

 

(d) Temporary differences not recognised

 

    For the Year Ended 31
January 2021
NZ$000’s
   

For the Year

Ended 31

January 2020

NZ$000’s

   

For the Year

Ended 31

January 2019

NZ$000’s

 
Temporary differences for which no deferred tax asset has been recognised     10,115       9,825       14,504  
Potential tax benefit at 28%     2,832       2,751       4,061