✨ Financial Statements
29 NOVEMBER 2010 NEW ZEALAND GAZETTE, No. 159 4005
TRANSPOWER NEW ZEALAND LIMITED LINES BUSINESS
7. Income tax expense
| LINES BUSINESS | 2010 $\'000 | 2009 $\'000 |
|---|---|---|
| Current tax expense | ||
| Current period | 32,101 | 34,940 |
| Adjustment for prior periods | (572) | 373 |
| 31,529 | 35,313 |
| Deferred tax expense | | |
| Origination and reversal of temporary differences | (14,455) | (17,006) |
| Removal of depreciation on buildings | 22,349 | - |
| Change in future tax rate | (12,268) | - |
| | (4,374) | (17,006) |
| Total income tax expense (credit) | 27,155 | 18,307 |
| Amounts charged or credited to other comprehensive income |
| Unrealised gain on available for sale investments | - | (281) |
| Income tax expense (credit) reported in other comprehensive income | - | (281) |
| Reconciliation of effective tax |
| Operating surplus before tax | 56,900 | 99,142 |
| Income tax at 30c | 17,070 | 29,743 |
| Tax effect of: |
| Change in future tax rate | (12,268) | - |
| Removal of depreciation on buildings | 22,349 | - |
| Non deductible expenses | 114 | - |
| Tax exempt income | - | - |
| (Under/over) provided in prior periods | (110) | (11,436) |
| Total income tax expense (credit) | 27,155 | 18,307 |
As a result of the 20 May 2010 budget tax changes, The Transpower Lines Business has reduced its deferred tax liability by $12 million for the reduction in the company tax rate effective 1 July 2011. Also, the Lines Business has increased its deferred tax liability by $22 million for the changes in building depreciation rules.
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NZ Gazette 2010, No 159
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Transpower New Zealand Limited Financial Statements
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🏭 Trade, Customs & Industry19 November 2010
Financial statements, Income tax expense, Deferred tax, Tax changes, Depreciation