SA rand
Figures in million20102009



 SA normal taxation  
 Mining tax (a)  
 – current year257
 – prior year
 Non-mining tax (b)  
 – current year35143
 – prior year4
 Deferred tax (c)  
 – deferred tax87109
 Total normal taxation124313
 (a)Mining tax on gold mining income in South Africa is determined according to a formula, based on the taxable income from mining operations. The company had made no election to be exempt from Secondary Tax on Companies (STC) and is therefore taxed at a lower rate.  
  All qualifying mining capital expenditure is deducted from taxable mining income to the extent that it does not result in an assessed loss and accounting depreciation is eliminated when calculating the company's mining taxable income. Excess capital expenditure is carried forward as unredeemed capital to be claimed from future mining taxable income.  
  The formula for determining the South African gold mining tax rate for the 2009 and 2010 financial years is:  
  Y = 34 – 170/X  
  Where Y is the percentage rate of tax payable and X is the ratio of taxable income, net of any qualifying capital expenditure bears to mining income so derived, expressed as a percentage.  
 (b)Non-mining income is taxed at 28%.  
 (c)The deferred tax rate used to calculate deferred tax is based on the current estimate of future profitability when temporary differences will reverse. Depending on the profitability of the operations, the deferred tax rate can consequently be significantly different from year to year. The deferred tax rate for the 2010 financial year was 23.1% (2009: 17.1%).  
 The tax rates remained unchanged for the 2010 and 2009 financial years.  
 Major items causing the income tax provision to differ from the maximum mining statutory tax rate of 34% were:  
 Tax on net (loss)/income at the maximum mining statutory tax rate139(94)
 Non-allowable deductions(208)(332)
 Effect on temporary differences due to changes in effective tax rate(55)117
 Prior year adjustment – mining and non-mining tax(4)
 Income and mining taxation(124)(313)
 Effective income and mining tax rate(30%)113%
 Deferred tax  
 Deferred tax liabilities and assets on the balance sheet as at 30 June 2010 and 30 June 2009, relate to the following:  
 Gross deferred tax liability380243
 Amortisation and depreciation379237
 Product inventory not taxed3
 Gross deferred income and mining tax assets(86)(36)
 Unredeemed capital expenditure(3)(1)
 Provisions, including non-current provisions(83)(35)
 Net deferred tax liability294207
 Movement in the net deferred tax liability recognised in the balance sheet is as follows:  
 Balance at beginning of year20798
 Total charge per income statement87109
 Balance at end of year294207
 The following amounts that are expected to realise or be recovered in the next 12 months have been included in the deferred tax liabilities and assets:  
 Deferred tax liabilities396
 Deferred tax assets(25)(17)
 Net current deferred tax liability/(asset)14(11)
 At 30 June 2010, the company has unredeemed capital expenditure of R13 million (2009: R6 million) and a nil tax loss (2009: nil) available for deduction against future mining taxable income. These future deductions are utilisable against mining taxable income generated only from the company’s current mining operations and does not expire unless the company ceases to trade for a period longer than one year.  
 As at 30 June 2009 and 2010, the company had recognised all deferred tax assets in the determination of the net deferred tax liability.  
 During the years ended 30 June 2010 and 2009, there was no tax charged directly to equity.  
 Secondary Taxation on Companies  
 STC is a tax levied on South African companies at a rate of 10% with effect from 1 October 2007 on dividends distributed.  
 Current and deferred tax are measured at the tax rate applicable to undistributed income and therefore only take STC into account to the extent that dividends have been received or paid.  
 On declaration of a dividend, the company includes the STC on this dividend in its computation of the income tax expense in the period of such declaration.  
 Available STC credits at end of year141273
 On 13 August 2010, the board of directors approved a final dividend for the 2010 financial year of 50 SA cents per share. The total dividend amounts to R214 million. As the dividends declared exceed the STC credits available, STC on the amount of R73 million is payable at a rate of 10%.