New Zealand Gazette – 2008 – No. 39

Page 910

✨ Financial Statements Notes



VECTOR LIMITED

ELECTRICITY LINES BUSINESS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2007

3. INTEREST EXPENSE

2007 2006
$000 $000
Interest expense on borrowings 138,107 125,944
Financing charges related to finance leases - -
Other interest expense - -
Total interest expense 138,107 125,944

4. INCOME TAX

NOTE 2007 2006
$000 $000
Operating surplus before income tax 91,939 101,922
Prima facie tax at 33% 30,340 33,634
Plus tax effect of permanent differences:
Other permanent differences 20,557 14,519
Income tax expense 50,897 48,153

The income tax expense is represented by:

2007 2006
$000 $000
Current tax 28,375 29,256
Deferred tax 5 22,522
Total 50,897

5. DEFERRED TAX

NOTE 2007 2006
$000 $000
Balance at beginning of the year 267,665 229,511
Increase on revaluation of property, plant & equipment - 19,257
On net surplus for the year 4 22,522 18,897
Balance at end of the year 290,187 267,665

In May 2007, the Government changed the corporate tax rate to 30% effective from the 2008/2009 income year. The estimated impact of this rate change is a reduction of $25.3 million in the deferred tax liability.

6. DIVIDENDS

It is assumed that the electricity lines business has paid a notional dividend of $45.9 million (31 March 2006: $70.2 million), equating to 64.4% (31 March 2006: 83.5%) of net profit after tax and before intangible asset amortisation (NPATA), which is based on the NPATA payout ratio of the Vector group.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2008, No 39


Gazette.govt.nz — PDF NZ Gazette 2008, No 39




✨ LLM interpretation of page content

🏭 Notes to the Financial Statements for Vector Limited (continued from previous page)

🏭 Trade, Customs & Industry
Financial Statements, Interest Expense, Income Tax, Deferred Tax, Dividends, Vector Limited