CSL Annual Report 2022

Note 4: Tax 2022 US$m 2021 US$m a. Income tax expense recognised in the statement of comprehensive income Current tax expense Current Year 353.6 442.2 Deferred tax expense/(recovery) Origination and reversal of temporary differences 222.8 127.5 Total deferred tax expense 222.8 127.5 (Over)/under provided in prior years (51.5) 18.4 Income tax expense 524.9 588.1 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 2,779.6 2,963.1 Income tax calculated at 30% (2021: 30%) 833.9 888.9 Effects of different rates of tax on overseas income (247.6) (217.1) Research and development incentives (62.7) (69.1) (Over)/under provision in prior year (51.5) 18.4 Revaluation of deferred tax balances 17.7 (19.8) Other non-deductible expenses/(non-assessable revenue) 35.1 (13.2) Income tax expense 524.9 588.1 c. Income tax recognised directly in equity Deferred tax benefit Share-based payments 0.1 6.2 Income tax benefit recognised in equity 0.1 6.2 d. Deferred tax assets and liabilities Deferred tax asset 517.5 529.5 Deferred tax liability (670.1) (459.4) Net deferred tax asset (152.6) 70.1 Deferred tax balances reflect temporary differences attributable to: Amounts recognised in the statement of comprehensive income Inventories 134.6 291.8 Property, plant and equipment (352.4) (301.5) Intangible assets (215.2) (253.4) Trade and other payables 160.4 93.1 Recognised carry-forward tax losses 3.0 95.7 Retirement liabilities, net 23.1 55.2 Receivables and contract assets (97.5) (83.4) Other assets – 2.8 Interest-bearing liabilities 50.3 57.7 Other liabilities and provisions 88.3 68.5 Tax bases not in net assets for share-based payments 17.9 8.8 Total recognised in the statement of comprehensive income (187.5) 35.3 Amounts recognised in equity Share-based payments 34.9 34.8 Net deferred tax asset (152.6) 70.1 CSL Limited Annual Report 2021/22 107

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