Notes to the Financial Statements Note 4: Tax 2026 2025 US$m US$m a. Income tax expense recognised in the statement of comprehensive income Current tax expense Current year 354 785 Deferred tax (recovery) Origination and reversal of temporary differences (1,458) (194) Total deferred tax (recovery) (1,458) (194) Under/(over) provision in prior year 3 (3) Income tax (benefit)/expense (1,101) 588 b. Reconciliation between tax expense and pre-tax net (loss)/profit Accounting (loss)/profit before income tax (4,087) 3,724 Income tax calculated at 30% (2025: 30%) (1,226) 1,117 Effects of different rates of tax on overseas income 686 (403) Research and development incentives (48) (102) Under/(over) provision in prior year 3 (3) Revaluation of deferred tax balances 12 21 Tax effect of goodwill impairment 243 — Recognition of tax losses from investment impairments (853) — Other non-deductible expenses/(non-assessable revenue) 82 (42) Income tax (benefit)/expense (1,101) 588 c. Income tax recognised directly in equity Share-based payments — 1 Income tax benefit recognised in equity — 1 d. Deferred tax assets and liabilities Deferred tax assets 2,226 1,091 Deferred tax liabilities (1,191) (1,510) Net deferred tax assets/((liabilities) 1,035 (419) The composition of the Group’s net deferred tax assets and liabilities are attributable to: Inventories 219 206 Property, plant and equipment (392) (420) Intangible assets (230) (770) Trade and other payables 200 271 Recognised carry-forward tax losses 1,023 135 Retirement liabilities, net 38 53 Receivables and contract assets 17 (74) Other assets — — Interest-bearing liabilities 22 61 Provisions and other liabilities 114 75 Other 24 44 Net deferred assets/(liabilities) 1,035 (419) e. Movement in net deferred tax liability during the year Opening balance (419) (603) Credited to profit or loss 1,458 194 Charged to OCI (4) (11) Credited to equity — 1 Closing balance 1,035 (419) 104 104 Financial Report
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