CSL Ltd Annual Report 2020

CSL Limited Annual Report 2020 107 Note 3: Tax 2020 US$m 2019 US$m a. Income tax expense recognised in the statement of comprehensive income Current tax expense Current year 410.4 428.5 Deferred tax expense/(recovery) Origination and reversal of temporary differences 28.7 7.2 Total deferred tax expense/(recovery) 28.7 7.2 Over/(under) provided in prior years 31.2 (13.3) Income tax expense 470.2 422.4 b. Reconciliation between tax expense and pre-tax net profit The reconciliation between tax expense and the product of accounting profit before income tax multiplied by the Group’s applicable income tax rate is as follows: Accounting profit before income tax 2,572.7 2,341.1 Income tax calculated at 30% (2019: 30%) 771.8 702.3 Effects of different rates of tax on overseas income (325.8) (256.1) Research and development incentives (22.8) (25.5) (Over)/under provision in prior year 31.2 (13.3) Revaluation of Deferred Tax Balances 51.7 0.0 Other (non-assessable revenue)/non-deductible expenses (35.9) 15.0 Income tax expense 470.2 422.4 c. Income tax recognised directly in equity Deferred tax benefit/(expense) Share-based payments 6.8 0.6 Income tax benefit/(expense) recognised in equity 6.8 0.6 d. Deferred tax assets and liabilities Deferred tax asset 543.0 378.7 Deferred tax liability (352.0) (168.7) Net deferred tax asset 191.0 210.0 Deferred tax balances reflect temporary differences attributable to: Amounts recognised in the statement of comprehensive income Inventories 246.0 215.6 Property, plant and equipment (285.0) (162.6) Intangible assets (227.8) (169.0) Trade and other payables 72.0 32.7 Recognised carry forward tax losses a 142.2 183.4 Retirement liabilities, net 69.1 50.9 Receivables and contract assets (19.8) (54.9) Other assets 0.5 4.9 Interest bearing liabilities 55.7 13.5 Other liabilities and provisions 75.9 74.2 Tax bases not in net assets – share-based payments 34.0 (0.4) Total recognised in the statement of comprehensive income 162.4 188.3 Amounts recognised in equity Share-based payments 28.6 21.8 Net deferred tax asset 191.0 210.0 a. Deferred tax assets in respect of carry forward tax losses are principally recorded in CSL entities in Switzerland and the UK (prior year: Switzerland and the UK) and are recognised as it is probable that future taxable profit will be available in those entities to utilise the losses.