4384 NEW ZEALAND GAZETTE, No. 182 9 DECEMBER 2009

2. Surplus Before Taxation

Surplus/(Deficit) before income tax | $1,737,182 | $1,264,098 | $(6,883,990) | $(2,336,201) |

After charging:
Adult fees | $21,315 | $7,876 | $31,885 | $30,179 |
Adult fees other services | - | $1,144 | - | $4,382 |
Interest from short term deposits| $280,699 | - | - | - |

Depreciation: Distribution network | $795,806 | $788,152 | - | - |
Leasehold improvements | $19,510 | $26,243 | $7,422 | $3,658 |
Vehicles | $29,166 | $28,623 | $3,527 | - |
Office equipment | $2,245 | $6,367 | $7,433 | $3,731 |
Furniture & fittings | $3,421 | $5,363 | $4,947 | $4,768 |
Plant & equipment | $36,855 | $35,574 | - | - |
Customer Acquisitions | - | - | $279,862 | $104,055 |
Computer h/ware & s/ware | $58,042 | $68,509 | $45,010 | $49,313 |
| $942,824 | $958,831 | $348,201 | $165,526 |

Directors' fees | $72,500 | $63,797 | $72,500 | $63,797 |
Interest: fixed loans | $675,127 | $898,162 | $688,192 | $258,016 |
Rental & operating lease costs | $79,711 | $70,283 | $86,034 | $26,187 |
Movements in provision for doubtful debts | - | - | $37,716 | $(16,850) |
Bad debts written off | - | - | $12,371 | $54,039 |

After crediting:
Interest from short term deposits| $9,088 | - | $84,764 | $(212,995) |
Profit on sales of assets | - | - | - | $337 |
Dividends received | - | $337 | - | $337 |

3. Taxation

Current tax | - | - | - | - |
Prior period adjustments to current tax | - | $(122,403) | - | - |
Deferred tax | $(120,830) | $(145,618) | $(640,882) | $(317,803) |
Tax expense | $(120,830) | $(268,021) | $(640,882) | $(317,603) |

Relationship between tax expense and accounting profit

Surplus/(Deficit) before income tax | $1,737,182 | $1,264,098 | $(6,883,990) | $(2,336,201) |
Prima facie taxation at 30% (2008 33%) | $521,155 | $417,152 | $(2,085,197) | $(770,946) |

Non deductible items | - | 20,732 | - | $(4,918) |
Non taxable income | - | - | - | - |
Deferred tax adjustment | $(641,985) | $(583,502) | $1,424,335 | $458,261 |
Prior period adjustment | - | $(122,403) | - | - |

Taxation expense / (benefit) | $(120,830) | $(268,021) | $(640,862) | $(317,503) |

Deferred Tax Liability

Distribution
Balance at 1 July 2007 | $(4,800,000) | $26,538 | - | $(4,773,462) |
Charged to income | $153,767 | $(8,149) | - | $145,618 |
Charged to equity | $(479,809) | - | - | $(479,809) |
Balance at 30 June 2008 | $(5,126,042) | $18,389 | - | $(5,107,653) |
Charged to income | $(8,108) | $(5,115) | $134,052 | $120,830 |
Charged to equity | - | - | - | - |
Balance at 30 June 2009 | $(5,134,149) | $13,274 | $134,052 | $(4,986,823) |

Retail
Balance at 1 July 2007 | $(85,000) | $41,583 | - | $(43,417) |
Charged to income | $(152,979) | $(9,902) | $480,484 | $317,603 |
Charged to equity | - | - | - | - |
Balance at 30 June 2008 | $(237,979) | $31,681 | $480,484 | $274,186 |
Charged to income | $(96,158) | $15,969 | $721,052 | $640,862 |
Charged to equity | - | - | - | - |
Balance at 30 June 2009 | $(334,137) | $47,649 | $1,201,536 | $915,048 |

The deferred tax liability recognises all taxable temporary timing differences between the carrying amounts of assets and liabilities in financial statements and the corresponding tax bases used in the computation of taxable profit. This amount is not expected to reverse in the foreseeable future and is not a tax liability owed to the Inland Revenue Department.