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Company annual financial statements

Notes to the company annual financial statements

    2005 2004
    Rm Rm

34 

Current and deferred taxation

    
       
  Current taxation  112 112
  Deferred taxation 19 173
    131 285
 

34.1

Deferred tax analysis

    
    Deferred tax at the beginning of the year 173 114
    (Reversing)/originating temporary difference for the year    
    Secondary tax on companies (154) 59
    Deferred tax at end of the year1 19 173
    1Deferred tax at the end of the year is attributable to secondary tax on companies.    

35

Interest in subsidiaries
  Shares at cost 21 107 17 257
  Indebtedness to the company 408 531
  21 515  17 788
  Indebtedness by the company (1 189) (1 075)
    20 326  16 713
  Subsidiaries and investments and loans therein are listed in Annexure C    

36

Interest in associate
  Cost at beginning and end of the year 131 131
  Directors’ valuation
  The directors’ valuation of the investment in the associate is R131 million (2004: R131 million).

The associate comprises an investment in South African Home Loans (Proprietary) Limited, refer Annexure D.

    

37

Loans from other banks
  Loans from other banks 900 –
 

An amount of R500 million is repayable on 19 June 2006 and bears interest of 7,4% per annum payable on 16 March 2006 and 19 June 2006.

The remaining amount is repayable on 19 June 2006 and bears interest of 7,6% per annum payable on 16 March 2006 and 19 June 2006.

   

38 

Taxation
  Indirect taxation (note 38.1) 13 11
  Direct taxation (note 38.2) 188 2
  Total taxation 201 13
 

38.1

Indirect taxation

    
    Regional services council levies 11 9
    Value added tax 2 2
    Indirect taxation 13 11
 

38.2

Direct taxation

    
    Current year    
    South African normal tax 1 17
    Foreign and withholding taxes 43 44
    Secondary tax on companies 173 (59)
       
    Prior years    
    South African normal tax (29) –
    Direct taxation 188 2
    Rate reconciliation of direct taxation (%)    
    The direct taxation charge for the year as a percentage of profit    
      before direct taxation: 3 –
    Foreign and witholding taxes (1) (1)
    Secondary tax on companies (2) 1
    Tax relating to prior years – –
    Net tax charge – –
       
    The charge for the year has been reduced as a consequence of:    
    – Dividends received 29 30
    Standard rate of South African tax 29 30
    In 2005, the South African government decreased the corporate tax rate    
    from 30% to 29%.    

39

Cash flow statement

    
 

39.1

Reconciliation of income before indirect taxation to

    
    cash flows from operating activities    
    Income before tax 7 245 6 527
    Net cash flows from operating activities 7 245 6 527
 

39.2

Net cash flows (used in)/from operating funds

    
    Other liabilities (20) 6
    Decrease in other assets 1 –
      (19) 6
 

39.3

Taxation paid

    
    Taxation receivable and deferred taxation at beginning of the year 285 207
    Income statement charge (201) (13)
    Taxation receivable and deferred taxation at end of the year (131) (285)
      (47) (91)
 

39.4

Interest in subsidiaries

    
    Cost of acquisition of subsidiaries net of disposal (3 850) (3 685)
    Movement in net indebtedness 237 158
      (3 613) (3 527)
 

39.5

Dividends paid

    
    Amounts unpaid at beginning of the year – –
    Dividends to ordinary shareholders (4 107) (2 150)
    Dividends to preference shareholders (226) –
    Dividends received in terms of Tutuwa initiative 301 –
    Amounts unpaid at end of the year – –
      (4 032) (2 150)
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