Notes to the consolidated annual financial statements | Note 7

  Rm   2017        2016     
7. Taxation                
7.1 Income tax expense                
  South African current tax     (5 000)          (5 045)      
      Current year     (5 176)          (5 038)      
      Adjustments in respect of prior years     176           (7)      
   Foreign current tax     (827)          (634)      
      Current year     (483)          (716)      
      Adjustments in respect of prior years     (143)          138       
      Withholding tax     (201)          (56)      
      Current year     (192)          (61)      
      Adjustments in respect of prior years     (9)          5       
   Total current tax     (5 827)          (5 679)      
   Deferred tax on origination and reversal of temporary differences:                         
   South African deferred tax     (264)          (100)      
      Current year     (93)          (98)      
      Adjustments in respect of prior years     (171)          (2)      
   Foreign deferred tax     (11)          (155)      
      Current year     113           (12)      
      Adjustments in respect of prior years     (124)          (143)      
   Total deferred tax     (275)          (255)      
   Total income tax expense     (6 102)          (5 934)      
   Components of deferred tax charged to profit or loss                         
   Capital allowances     (325)          (311)      
   Foreign exchange     102           61       
   Tax losses     169           –       
   Provisions and deferred income     (85)          106       
   Other     (136)          (111)      
         (275)          (255)      
   Factors affecting tax expense for the year                         
   The table below discloses the differences between the expected income tax expense at the  South African statutory tax rate and the Group’s total income tax expense:                         
   Expected income tax expense on profit before tax at the South African statutory tax rate     (5 384)          (5 276)      
   Adjusted for:                         
      Non-deductible operating expenditure     (119)          (229)      
      Non-deductible finance costs     (33)          (106)      
      Non-deductible depreciation and amortisation     (25)          (46)      
      Unrecognised tax asset     (171)          (187)      
      Irrecoverable foreign taxes     (124)          (13)      
      Effect of taxation of associate and joint venture reported within operating profit     –           (70)      
      Minimum alternative taxes     (58)          (59)      
      Adjustments in respect of prior years     (271)          (9)      
      Effect of different statutory tax rates of jurisdictions other than South Africa     80           49       
      Non-taxable income     3           12       
   Total income tax expense     (6 102)          (5 934)    

  The South African statutory tax rate is 28.0% for all reporting periods. The Group’s effective tax rate is 31.7% (2016: 31.5%).

  Rm 2017    2016   
7.2 Other comprehensive income, net of tax        
  Foreign currency translation differences, net of tax (1 633)   260   
     Foreign currency translation differences (1 737)   418   
     Taxation 104    (158)  
  Gain on hedging instruments in cash flow hedges, net of tax –    4   
     Gain on hedging instruments in cash flow hedges –    3   
     Taxation –    1   
  Other comprehensive income, net of tax (1 633)   264   
7.3 Tax credited charged directly to other comprehensive income        
  Current tax 8    –   
  Deferred tax 96    (157)  
    104    (157)  
7.4 Deferred tax        
  Analysed in the statement of financial position, after offset of balances within companies, as follows:        
     Deferred tax assets 199    25   
     Deferred tax liabilities (2 635)   (2 272)  
    (2 436)   (2 247)  
  Components        
  Gross deferred tax assets and liabilities, before offset of balances within companies, are as follows:        
  Capital allowances (3 447)   (3 071)  
     Deferred tax liabilities (3 447)   (3 071)  
  Foreign exchange (293)   (235)  
     Deferred tax assets 93    107   
     Deferred tax liabilities (386)   (342)  
  Tax losses 174    2   
     Deferred tax assets 174    2   
  Provisions and deferred income 1 169    1 264   
     Deferred tax assets 1 169    1 266   
     Deferred tax liabilities –   (2)  
  Other (39)   (207)  
     Deferred taxation assets 12    17   
     Deferred taxation liabilities (51)   (224)  
    (2 436)   (2 247)  
  Reconciliation of net deferred tax balance        
  1 April (2 247)   (1 740)  
     Foreign currency translation differences 91    2 7  
     Charged to profit or loss (275)   (255)  
     Credited/(charged) directly to other comprehensive income 96    (157)  
     (Charged)/credited directly to equity (54)   14   
     Business combinations and disposal of subsidiaries (47)   (136)  
  31 March (2 436)   (2 247)  
7.5 Factors affecting the tax charge in future years        
  Total estimated tax losses 4 189    3 169   
  Utilised to reduce net temporary differences (588)   (6)  
  Estimated unused tax losses 3 601    3 163   

  If the estimated unused tax losses are applied, the available R1 155 million (2016: R1 002 million) would result in the current year’s R2 436 million net deferred tax liability reducing to R1 282 million (2016: R2 247 million net deferred tax liability reducing to R1 245 million), if sufficient future taxable profits will be available against which the unused tax losses can be utilised.

The gross amounts and expiry dates of deductible temporary differences, estimated unused tax losses and unused tax credits, for which no deferred tax asset is recognised, are as follows:

  Rm 2 – 5 years Unlimited Total  
  2017        
  Deductible temporary differences – 5 396 5 396  
  Estimated unused tax losses – 3 601 3 601  
  2016        
  Deductible temporary differences 2 3 650 3 652  
  Estimated unused tax losses 211 2 952 3 163