IGO Interactive Annual Report 2019

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 30 JUNE 2019 Notes to the consolidated financial statements 30 June 2019 (continued) 5 Income tax (a) Income tax expense 2019 $'000 2018 $'000 The major components of income tax expense are: Deferred income tax expense 29,363 26,380 Current income tax expense - - Income tax expense 29,363 26,380 Deferred income tax expense included in income tax expense comprises: Decrease in deferred tax assets 24,204 23,039 Increase in deferred tax liabilities 5,159 3,341 Deferred income tax expense 29,363 26,380 (b) Amounts recognised directly in equity Deferred income tax (benefit)/expense related to items charged or credited to other comprehensive income or directly to equity: Recognition of hedge contracts (452) 765 Income tax (benefit)/expense reported in equity (452) 765 (c) Numerical reconciliation of income tax expense to prima facie tax payable 2019 $'000 2018 $'000 Profit from continuing operations before income tax expense 105,448 79,066 Tax expense at the Australian tax rate of 30% (2018: 30%) 31,634 23,720 Tax effect of amounts which are not deductible (taxable) in calculating taxable income: Share-based payments 317 897 Other non-deductible items 519 1 Adjustment to tax cost base of asset on acquisition of subsidiary - (11,038) Impairment of tax losses previously recognised - 14,032 Non-assessable gain on disposal of subsidiary (811) (1,341) Capital losses not brought to account 16 - Previously unrecognised capital losses brought to account (27) (86) Difference in overseas tax rates 7 46 Overseas tax losses not brought to account 20 126 Adjustments for current tax of prior periods (2,312) 23 Income tax expense 29,363 26,380 Independence Group NL 15 IGO ANNUAL REPORT 2019 — 79