Notes to the consolidated financial statements

for the year ended 30 June 2008

		2008	2007
		R’000	R’000
22.	TAXATION AND STATE’S SHARE OF PROFITS
	South African normal taxation
	– current year	985 872	258 129
	– underprovisions relating to prior years	3 551	854
	Capital gains tax	3 130	6 239
	State’s share of profits	237 848	20 452
	Deferred taxation
	– temporary differences (current year)	267 630	68 187
	– temporary differences (prior years)	(708)	–
	– rate adjustment	(15 495)	–
	Secondary tax on companies	27 263	15 223
		1 509 091	369 084

	The current tax charge is affected by non-taxable investment income, capital redemption allowances and assessed tax losses in certain subsidiary companies and trading losses in other subsidiary companies for which there was no tax relief in the current year.

	Estimated losses available for the reduction of future taxable income arising in certain
	joint venture and subsidiary companies at year-end.	129 619	98 218

	Estimated unredeemed capital expenditure available for reduction of future taxable income
	on mining operations in certain joint venture and subsidiary companies	754 528	715 332

	The group has unused credits in respect of secondary tax on companies of R271,7 million
	(2007: R92,1 million). No deferred tax asset has been raised on these amounts as there is no
	certainty that the credits will to be utilised in the foreseeable future.

	Reconciliation of tax rate (%)
	Nominal tax rate	28,00	29,00
	Adjusted for:
	Dividend income	(0,05)	(0,12)
	Exempt income	(0,37)	(1,14)
	Under provision relating to prior year	0,06	0,07
	Capital gains tax	0,07	0,54
	State’s share of profits	3,68	1,74
	Effect of foreign taxation	0,03	–
	Disallowable expenditure	0,19	0,56
	Secondary tax on companies	0,58	1,30
	Impact of change in tax rate	(0,33)	–
	Other	0,33	(0,47)
	Effective tax rate	32,19	31,48

Notes to the consolidated financial statements

22.

TAXATION AND STATE’S SHARE OF PROFITS