| |
For the year ended June 30, 2007 (In thousands of United States Dollars)
| |
|
|
|
|
|
| |
|
|
2007 |
|
2006 |
| |
|
|
$ 000 |
|
$ 000 |
| Normal taxation |
|
|
|
|
|
| |
Canada |
|
– |
|
– |
| |
Barbados |
|
– |
|
20 |
| |
South Africa |
|
159 |
|
27 |
| |
Zambia |
|
1 |
|
72 |
| |
Namibia |
|
– |
|
– |
| |
DRC |
|
3 |
|
– |
| |
|
|
163 |
|
119 |
Future income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial
reporting and the amounts used for income tax purposes. Significant components of the Company’s future income tax assets are as follows:
| |
|
Canada |
|
Barbados |
|
Zambia |
|
Namibia |
|
DRC |
| |
|
$ 000 |
|
$ 000 |
|
$ 000 |
|
$ 000 |
|
$ 000 |
| Future income tax assets: |
|
|
|
|
|
|
|
|
|
|
| Net operating losses carry forwards |
|
(653) |
|
(40) |
|
(7,626) |
|
(10,486) |
|
(3,297) |
| Total future income tax assets |
|
(653) |
|
(40) |
|
(7,626) |
|
(10,486) |
|
(3,297) |
| Valuation allowance for future income tax assessment |
|
(653) |
|
(40) |
|
(7,626) |
|
(10,486) |
|
(3,297) |
| Net future income tax assets |
|
– |
|
– |
|
– |
|
– |
|
– |
The above amounts are estimated and have not been assessed and confirmed by the revenue authorities in the countries in which the Company operates.
In Canada, unused tax losses expire after seven years.
In Zambia, the unused income tax losses expire after ten years from the tax year in which the expenditure was incurred. For the future income tax assets calculated above, the majority of this expenditure was incurred from 1999 onwards.
In the other jurisdictions, the unused income tax losses do not expire.
The statutory income tax rates for mining companies in the various countries in which the Group operates, are:
| |
2007 |
|
2006 |
| |
% |
|
% |
| Canada |
36.12 |
|
36.12 |
| Barbados |
2.5 |
|
2.5 |
| South Africa (branch of holding company) |
34 |
|
34 |
| Zambia |
35 |
|
25 |
| Namibia |
37.5 |
|
37.5 |
| DRC |
Up to 40 |
|
Up to 40 |
| |
|
|
|
| |
2007 |
|
2006 |
| |
% |
|
% |
| The reconciliation of income tax attributable to operations computed at the statutory income tax rates to income tax expense/(recovery), using weighted average income tax rates are as follows: |
|
|
|
| Income tax at statutory rates |
(36.1) |
|
(36.1) |
| Expenses not deductible for income tax purposes |
4.1 |
|
7.9 |
| Revenue and unrealized gains not taxable |
(0.7) |
|
(7.8) |
| Assessed losses utilized |
– |
|
24.0 |
| Valuation allowance against income tax assets |
30.9 |
|
13.8 |
| Effect due to different income tax rates |
(0.1) |
|
(3.1) |
| Effective rate of taxation |
(1.9) |
|
(1.3) |
|