2021 Annual Report

Notes to the consolidated financial statements 30 June 2021 (continued) 5 Income tax (continued) (e) Deferred tax assets and liabilities Balance Sheet Profit or loss Equity 2021 $'000 2020 $'000 2021 $'000 2020 $'000 2021 $'000 2020 $'000 Deferred tax assets Property, plant and equipment 225 - (225) - - - Business-related capital allowances 4,463 1,441 1,978 390 (5,000) - Provision for employee entitlements 3,429 2,730 (699) (820) - - Provision for rehabilitation 13,375 19,980 6,605 (1,248) - - Borrowing costs 4,239 - (4,239) - - - Leased assets 101 237 136 (237) - - Carry forward tax losses 266 91,730 91,464 62,658 - - Other 4,623 3,616 (1,007) (240) - - Gross deferred tax assets 30,721 119,734 94,013 60,503 (5,000) - Deferred tax liabilities Capitalised exploration expenditure (6,327) (4,991) 1,336 2,828 - - Mine properties (82,376) (121,980) (39,604) (6,980) - - Property, plant and equipment - (783) (783) (890) - - Deferred gains and losses on hedging contracts (825) (104) - - 721 (41) Trade receivables (5,977) (4,266) 1,711 1,414 - - Consumable inventories (1,841) (2,011) (170) 196 - - Financial assets at fair value through profit or loss (10,696) (7,320) 3,376 7,320 - - Other (514) (332) 182 28 - - Gross deferred tax liabilities (108,556) (141,787) (33,952) 3,916 721 (41) Net impact (77,835) (22,053) 60,061 64,419 (4,279) (41) (f) Tax losses In addition to the above recognised tax losses, the Group also has the following revenue and capital tax losses for which no deferred tax asset has been recognised: 2021 $'000 2020 $'000 Unrecognised revenue tax losses 24,707 46,775 Potential tax benefit @ 30% (2020: 30%) 7,412 14,033 Unrecognised capital tax losses 90,419 93,135 Potential tax benefit @ 30% (2020: 30%) 27,126 27,941 (g) Tax transparency code The Group has adopted the Board of Taxation's voluntary Tax Transparency Code (TTC). The TTC requires additional tax disclosures in two parts (Part A and Part B), which includes addressing the Company's approach to tax strategy and governance. The Group has addressed these Part A and Part B disclosures in this note and in its 2020 Tax Transparency Report. In relation to the year ended 30 June 2021, the Part A and Part B disclosures will be addressed in the Group's 2021 Annual Sustainability Report. IGO Limited 18 Notes to The Consolidated Financial Statements 30 June 2021 88 — IGO ANNUAL REPORT 2021