REA Group Ltd Annual Report 2021

Annual Report 2021 | REA Group Ltd 7. Income tax (continued) (a) Income tax expense 2021 $’000 2020 $’000 Current tax 159,078 130,286 Adjustments for current tax of prior periods 279 51 Deferred tax (4,839) (9,002) Adjustments for deferred tax of prior periods 859 (226) Total income tax expense reported in the Consolidated Income Statement 155,377 121,109 (b) Numerical reconciliation of income tax expense to prima facie tax payable 2021 $’000 2020 $’000 Accounting profit before income tax 468,360 233,694 Tax at the Australian tax rate of 30% (2020: 30%) 140,508 70,109 Tax effect of amounts which are not deductible/(taxable) in calculating taxable income: Research and development deduction (1,621) (1,967) Share of (gains)/losses of associates and joint ventures (3,785) 4,623 Prior period adjustments including research and development claim 1,138 (176) Effect of foreign tax rate 28 (318) Tax losses not recognised 15,665 9,946 Impairment of goodwill in subsidiaries – 32,028 Impairment of investment in associate – 14,843 (Gain)/loss on acquisitions (1,337) 618 (Gain)/loss on sale of business – (2,301) Tax cost setting adjustments for acquired entities (358) (8,044) Transaction costs 2,701 – Other 2,438 1,748 Total income tax expense reported in the Consolidated Income Statement 155,377 121,109 (c) Amounts recognised directly into equity 2021 $’000 2020 $’000 Aggregate current and deferred tax arising in the reporting period and not recognised in the Consolidated Income Statement or other comprehensive income but directly debited/(credited) to equity: Current tax – credited directly to equity – (311) Net deferred tax – debited/(credited) directly to equity (384) 21 Total amount recognised directly into equity (384) (290) Year in review Directors’ Report Financial Statements Remuneration Report Sustainability Our Leaders 81