NEW ZEALAND GAZETTE

No. 106

HAWKES BAY NETWORK LIMITED AND SUBSIDIARY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

For The Year Ended 31 March 1999

3 INCOME TAX

	Lines Business		Other Business
	1999	1998	1999	1998
	$000	$000	$000	$000

a) Taxation

Operating Surplus (Deficit) before Taxation

                    | 5,633          | (1,471)       | (6,227)        | 3,707         |

Prima Facie Tax @ 33%

                    | 1,859          | (485)         | (2,055)        | 1,223         |

PLUS: Permanent differences

                    | 1,084          | 80            | 77             | -             |

Taxation Expense

                    | 2,943          | (405)         | (1,978)        | 1,223         |

PLUS(LESS): Timing Differences

                    | (362)          | (581)         | 884            | -             |

Current Year Charge (Tax Loss)

                    | 2,581          | (986)         | (1,094)        | 1,223         |

Taxation Payable Brought Forward

                    | (103)          | -             | 228            | 326           |

LESS: Taxation Paid

                    | (1,650)        | 597           | -              | (1,035)       |

PLUS: Taxation Refunded

                    | -              | -             | -              | -             |

PLUS: Payment for Intra Group Tax Offset

                    | -              | 286           | -              | (286)         |

LESS: Tax Losses Brought Forward

                    | -              | -             | -              | -             |

Taxation Payable (Refund Due)

                    | 828            | (103)         | (866)          | 228           |

b) Taxation Expense (Benefit) is represented by:

Current Taxation Payable (Tax loss)

                    | 2,581          | (986)         | (1,094)        | 1,223         |

Deferred Taxation Liability

                    | 362            | 581           | (884)          | -             |

                    | 2,943          | (405)         | (1,978)        | 1,223         |

c) Movement in Deferred Taxation Liability (Tax losses carried forward)

Opening Balance

                    | -              | -             | (866)          | 13            |

Current Year Losses

                    | -              | -             | (866)          | 13            |

d) Movement in Deferred Taxation Liability (Timing Differences)

Opening Balance

                    | 1,732          | 1,151         | (13)           | (13)          |

Revaluation of Network Assets

                    | 8,383          | -             | -              | -             |

PLUS: Net Movement in Timing Differences

                    | 362            | 581           | (884)          | -             |

                    | 10,477         | 1,732         | (897)          | (13)          |

e) Imputation Credit Account

Opening Balance

                    | -              | -             | 2,503          | 1,182         |

Taxation Paid

                    | 1,650          | -             | -              | 1,035         |

Imputation Credits attached to Dividends paid in the year

                    | -              | -             | -              | -             |

Imputation Credits attached to Dividends received in the year

                    | -              | -             | (2,173)        | 286           |

                    | 1,650          | -             | 330            | 2,503         |

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