Urbanise.com Annual Report 2019

Annual Report 2019 Urbanise.com Limited 10. Income taxes 2019 $ 2018 $ (a) Components of tax expense Current tax – – Deferred tax – – Derecognition of temporary differences – – Under/(over) provision in prior years – – Total tax (benefit)/expense – – (b) Prima facie tax payable The prima facie tax payable on profit before income tax is reconciled to the income tax expense as follows: Accounting profit/(loss) before income tax (4,754,740) (27,560,041) Income tax expense/(benefit) calculated at 27.5% (2018: 27.5%) (1,307,554) (7,579,011) Add tax effect of: Foreign entity tax losses not brought to account – 781,144 Non-deductible items 381,769 3,816,850 Gain on IOT business – (119,821) R&D eligible expenditure – (5,416) Other non-deductible expenditure – 24,948 Non-recognition of deferred tax assets on current year losses 1,147,159 3,081,306 Effect of foreign tax rates (221,375) – Income tax expense/(benefit) attributable to profit – – (c) Current tax Current tax relates to the following: Opening balance – (61,222) Under/(over) provision in prior years – – Tax payments/proceeds – 61,222 Current tax receivable – – (d) Deferred income tax (revenue)/expense included in income tax expense comprises Decrease/(increase) in deferred tax assets – – (Decrease)/increase in deferred tax liabilities – – – – (e) Deferred income tax related to items charged or credited directly to equity Decrease/(increase) in deferred tax assets – – – – (f) Deferred tax assets not brought to account Foreign entity tax losses 1,569,088 1,654,298 Operating tax losses 15,500,192 11,073,738 Temporary differences - Australia 1,737,573 2,024,325 18,806,853 14,752,361 Notes to the Consolidated Financial Statements for the year ended 30 June 2019 (continued) 62