Notes to the Group financial statements | Note 7
for the year ended 31 December 2010

 

        December
2010
Rm		       December
2009
Rm		  
7. INCOME TAX EXPENSE                
  Analysis of tax expense for the year                
  Normal tax     (7 834)       (6 425)  
  – Current year     (7 766)       (6 480)  
  – Adjustment in respect of the prior year     (68)       55  
  Deferred tax (note 14)     (1 984)       (992)  
  – Current year     (2 045)       (974)  
  – Overprovision in respect of prior year     61       (18)  
  Capital gains tax     (28)       —  
  Foreign income and withholding taxes*     (786)       (856)  
  Secondary tax on companies     (636)       (339)  
        (11 268)       (8 612)  
  Secondary tax on companies                
  STC relating to post year end dividends     (658)       (353)  
  * Taxation for foreign jurisdictions is calculated at the rates that have been enacted or substantively enacted in the respective jurisdictions.
   
 

The table below explains the differences between the expected tax expense on continuing operations, at the South African statutory rate of 28% and the Group’s total tax expense for each year.

The income tax charge for the year is reconciled to the effective rate of taxation in South Africa as follows
        December
2010
%		       December
2009
%		  
  Tax rate reconciliation                
  Tax at standard rate     28,00       28,00  
  Expenses not allowed     2,60       1,80  
  Zakhele share costs – disallowed     2,96       —  
  Effect of different tax rates in other countries     (0,61)       0,10  
  Nigeria investment allowance relief     (0,48)       (1,10)  
  Income not subject to tax     (0,47)       (0,20)  
  Nigeria put option revaluation     (0,01)       (0,80)  
  Reversal of underprovision – deferred tax     0,48       —  
  Withholding taxes     2,80       3,10  
  Effect of STC     2,26       1,30  
  Capital gains tax     0,10       —  
  Other     2,47       1,20  
        40,10       33,40  
  The Group holds investments in Afghanistan, Belgium, Benin, Botswana, Cameroon, Congo-Brazzaville, Côte d’Ivoire, Cyprus, Ghana, Guinea-Bissau, Guinea-Conakry, Iran, Kenya, Liberia, Monaco, Namibia, Nigeria, Rwanda, Sudan, Swaziland, Syria, Uganda, Yemen and Zambia. Taxation for foreign jurisdictions is calculated at the rates that have been enacted or substantively enacted in the respective jurisdictions.