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 (continued) (d) Reconciliation of carry forward tax losses and income tax paid 2019 $'000 2018 $'000 Tax effected balances at 30% Carry forward tax losses at the beginning of the year 180,695 198,571 Tax losses recouped from current year (26,307) (3,844) Impairment of tax losses - (14,032) Carry forward tax losses at the end of the year 154,388 180,695 Effective income tax rate based on income tax paid -% -% (e) Deferred tax assets and liabilities Balance Sheet Profit or loss Equity Disposal of Subsidiary 2019 $'000 2018 $'000 2019 $'000 2018 $'000 2019 $'000 2018 $'000 2019 $'000 2018 $'000 Deferred tax liabilities Capitalised exploration expenditure (2,163) (3,915) (3,319) (8,729) - - 1,567 (641) Mine properties (128,960) (121,034) 7,926 14,212 - - - (8,899) Property, plant and equipment (1,673) - 1,673 - - - - - Deferred gains and losses on hedging contracts (145) (597) - - (452) 400 - - Trade debtors (2,852) (2,606) 246 (3,226) - - - (1,074) Consumable inventories (1,815) (1,905) (90) 750 - - - (1,359) Other (304) (1,581) (1,277) 334 - - - (33) Gross deferred tax liabilities (137,912) (131,638) 5,159 3,341 (452) 400 1,567 (12,006) Deferred tax assets Property, plant and equipment - 514 (967) 2,766 - - 1,481 14,685 Deferred losses on hedged commodity contracts - - - - - 365 - - Business-related capital allowances 1,831 3,593 1,762 1,916 - - - - Provision for employee entitlements 1,910 1,738 (172) 1,851 - - - 1,151 Provision for rehabilitation 18,732 18,380 (1,701) (391) - - 1,349 3,824 Mining information - - - 172 - - - 543 Carry forward tax losses 154,388 180,695 26,307 17,876 - - - - Other 3,376 2,351 (1,025) (1,151) - - - 551 Gross deferred tax assets 180,237 207,271 24,204 23,039 - 365 2,830 20,754 Deferred tax expense/(benefit) 42,325 75,633 29,363 26,380 (452) 765 4,397 8,748 Independence Group NL 16 80 — IGO ANNUAL REPORT 2019