CSL Ltd Annual Report 2021

Note 3: Tax 3 The comparative balances have been restated to reflect the finalisation of the Vitaeris’ acquisition accounting (refer to Note 1b). 4 D eferred 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. 2021 US$m 2020 (restated) 3 US$m a. Income tax expense recognised in the statement of comprehensive income Current tax expense Current Year 442.2 410.4 Deferred tax expense/(recovery) Origination and reversal of temporary differences 127.5 28.6 Total deferred tax expense 127.5 28.6 Under provided in prior years 18.4 31.2 Income tax expense 588.1 470.2 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 2,963.1 2,572.7 Income tax calculated at 30% (2020: 30%) 888.9 771.8 Effects of different rates of tax on overseas income (217.1) (325.8) Research and development incentives (69.1) (22.8) Under provision in prior year 18.4 31.2 Revaluation of deferred tax balances (19.8) 51.7 Other non-assessable revenue (13.2) (35.9) Income tax expense 588.1 470.2 c. Income tax recognised directly in equity Deferred tax benefit Share based payments 6.2 6.8 Income tax benefit recognised in equity 6.2 6.8 d. Deferred tax assets and liabilities Deferred tax asset 529.5 543.0 Deferred tax liability (459.4) (385.0) Net deferred tax asset 70.1 158.0 Deferred tax balances reflect temporary differences attributable to: Amounts recognised in the statement of comprehensive income Inventories 291.8 246.0 Property, plant and equipment (301.5) (285.0) Intangible assets (253.4) (260.8) Trade and other payables 93.1 72.0 Recognised carry-forward tax losses 4 95.7 142.2 Retirement liabilities, net 55.2 69.1 Receivables and contract assets (83.4) (19.8) Other assets 2.8 0.1 Interest bearing liabilities 57.7 55.7 Other liabilities and provisions 68.5 75.9 Tax bases not in net assets – share based payments 8.8 34.0 Total recognised in the statement of comprehensive income 35.3 129.4 Amounts recognised in equity Share-based payments 34.8 28.6 Net deferred tax asset 70.1 158.0 CSL Limited Annual Report 2020/21 115