20974 29Metals AR23 WEB V1 - Flipbook - Page 158
29Metals 2023 Annual Report
154
Consolidated Financial Statements continued
29Metals Appendix 4E and Annual Financial Report for 29Metals Limited and its Controlled Entities for the year ended 31 December 2023
79
Consolidated Financial Statements
Note 9: Taxes (continued)
(c) Tax consolidation
rom
December
to
uly
GG
etals formed a TCG ith effect from
the dates set out belo .
Group ere part of a TCG
une
.
ith GG
as the head entity of that TCG.
etals is the head entity of the TCG. ach of the follo ing entities oined the
etals TCG on
Date joined TCG
Capricorn Copper oldings ty td and its holly o ned subsidiaries
ighthouse
inerals ty td
une
etals inance ty td
Golden Gro e oldings
Golden Gro e
une
uly
o.
ty td
uly
and its holly o ned subsidiaries
uly
embers of the
etals TCG ha e entered into a Tax haring Deed that determines the income tax liabilities bet een the entities should the head
entity default on its tax payment obligations. n accordance ith the Tax haring Deed the company is re uired to determine the contribution amount for
each member of the TCG on a stand alone basis. ossibility of default by the head entity is considered remote.
Tax expense or benefit deferred tax liabilities and deferred tax assets arising from temporary differences of the members of the TCG are recognised in
the separate financial statements of the members of the TCG using the ‘stand alone taxpayer’ approach. Deferred tax on temporary differences is
measured in the separate financial statements on tax bases as determined by the TCG.
embers of the TCG ha e entered into a Tax unding Deed that determines the amount payable by each member for their portion of the group’s current
tax and deferred tax liability. The Tax unding Deed pro ides that each member’s funding amount is calculated as if the member as a stand alone entity
of the TCG.
Recognition and measurement
The income tax expense or benefit for a period is the tax payable on that period s taxable income based on the applicable income tax rate for each
urisdiction ad usted by the changes in deferred tax assets and liabilities attributable to temporary differences unused tax losses and the ad ustment
recognised for prior periods here applicable.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied hen the assets are reco ered or
liabilities are settled based on the tax rates that are enacted or substanti ely enacted except for
▪
▪
hen the deferred income tax asset or liability arises from the initial recognition of good ill or an asset or liability in a transaction that is not a
business combination and at the time of the transaction affects neither the accounting nor taxable profits or
hen the taxable temporary difference is associated ith interests in subsidiaries associates or oint entures and the timing of the re ersal can be
controlled and it is probable that the temporary difference ill not re erse in the foreseeable future.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts ill be
a ailable to utilise those temporary differences and losses.
The carrying amount of recognised and unrecognised deferred tax assets are re ie ed at each reporting date. Deferred tax assets recognised are reduced
to the extent that it is no longer probable that future taxable profits ill be a ailable for the carrying amount to be reco ered. re iously unrecognised
deferred tax assets are recognised to the extent that it is probable that there are future taxable profits a ailable to reco er the asset.
ncome taxes relating to items recognised directly in e uity are recognised in e uity and not in the Consolidated tatement of Comprehensi e ncome.
Deferred tax assets and liabilities are offset only here there is a legally enforceable right to offset current tax assets against current tax liabilities and
deferred tax assets against deferred tax liabilities and they relate to the same taxable authority on either the same taxable entity or different taxable
entities hich intend to settle simultaneously.
Significant accounting estimates and assumptions
ignificant estimates and assumptions are re uired in relation to the pro ision for taxes and the reco ery of tax assets ha ing regard to the nature and
timing of their origination and compliance ith the rele ant tax legislation.
79
