2021 Annual Report

Notes to the consolidated financial statements 30 June 2021 (continued) 5 Income tax (continued) (b) Amounts recognised directly in equity 2021 $'000 2020 $'000 Deferred income tax (benefit)/expense related to items charged or credited to other comprehensive income or directly to equity: Recognition of hedge contracts 721 (41) Business-related capital allowances (5,000) - Income tax benefit reported in equity (4,279) (41) (c) Numerical reconciliation of income tax expense to prima facie tax payable 2021 $'000 2020 $'000 Profit from continuing operations before income tax expense 156,587 121,230 Profit from discontinued operation before income tax expense 624,087 98,282 780,674 219,512 Tax expense at the Australian tax rate of 30% (2020: 30%) 234,202 65,854 Tax effect of amounts which are not deductible (taxable) in calculating taxable income: Share-based payments (250) 789 Other non-deductible items 43 494 233,995 67,137 Capital losses not brought to account 139 466 Previously unrecognised capital losses brought to account - (145) Difference in overseas tax rates 5 4 Overseas tax losses not brought to account 13 12 Adjustments for current tax of prior periods (244) - Research and development tax credit of prior periods (232) (540) Recoupment of tax losses not recognised (6,620) - Adjustment for deferred tax asset not previously brought to account - (2,515) Adjustment for write-off of deferred tax balances on disposal of joint venture 4,957 - Income tax expense 232,013 64,419 (d) Reconciliation of carry forward tax losses and income tax paid 2021 $'000 2020 $'000 Tax effected balances at 30% Carry forward tax losses at the beginning of the year 91,730 154,388 Tax losses recouped during the current year (98,084) (62,658) Recoupment of tax losses not recognised 6,620 - Carry forward tax losses at the end of the year 266 91,730 IGO Limited 17 Notes to The Consolidated Financial Statements 30 June 2021 IGO ANNUAL REPORT 2021 — 87