4184 NEW ZEALAND GAZETTE, No. 172 27 NOVEMBER 2009

20. Deferred tax

TRANSPOWER NEW ZEALAND LIMITED LINES BUSINESS

| LINES BUSINESS | 2007 $\ 000 | | 2008 $\ 000 | | 2009 $\ 000 |
|-------------------------------------|-------------------|-----------------------------------|--------------------|
| Balance 1 July | | Balance 30 June 2008 | | Balance 30 June 2009 |
| Depreciation timing differences | 162,475 | Recognised in profit or loss | 158,648 | Recognised in profit or loss | 15,754 |
| Fair value of net debt and derivatives | 33,305 | | 20,071 | | (26,081) |
| Revenue deferral | (972) | | 684 | | 864 |
| Other | (7,601) | | 3,663 | | (5,635) |
| | 187,207 | | 183,066 | | (15,108) |
| Total deferred tax | | | | |

| Recognised in recognised equity | | Recognised in recognised equity | | Recognised in equity |
| | | | | 13,470 |
| | | | | 422 |
| | | | | 61 |
| | | | | (5,020) |
| | | | | 158,777 |

There are no unrecognised deferred tax balances (2008: nil).

Deferred tax is shown net as the balance relates to companies included in the Lines Business Tax Group and relate to the same country, being the New Zealand Inland Revenue Department.

Depreciation timing differences relate to the difference between tax and accounting gains/losses.

Fair value of net debt and derivatives relates to deferred tax on fair value gains/losses.

Revenue deferral relates to deferred tax new investments agreements and transmission reinvestment. Note 3 Deferred income contains information on these transactions.

Disallowing provision relates to the HVCDc Role 1, refer to Note 17 Provisions for background.

Imputation credit memorandum account

| LINES BUSINESS | 2008 $\ 000 | | 2009 $\ 000 |
|-------------------------------------------------------------|-------------------|-------------------|
| Balance at the beginning of the year | 259,402 | 211,384 |
| Imputation credits on dividends received | 30,997 | 48,014 |
| Net tax payments/transfers received | 7,003 | - |
| Imputation credits attached to dividends paid to shareholders | (86,018) | (259,402) |
| Balance at the end of the year | 211,384 | - |

Dividend Withholding Payments

There were no dividend withholding payments during the year (2008: none).