2018 
R’000 		       2017 
R’000 		   
5.  TAXATION                
5.1  Income taxation                
   Current taxation  1 328 726        1 422 952    
      Current year  1 348 299        1 408 203    
      Prior years’ (over) under provision  (19 573)       14 749    
   Deferred taxation  15 919        (181 773)   
      Current year  7 906        (166 019)   
      Prior years’ under (over) provision  8 956        (10 161)   
      Change in rate of taxation  (943)       (5 593)   
   Foreign withholding taxation  4 104        5 462    
   Total taxation per consolidated statement of profit or loss  1 348 749        1 246 641    
   Comprising                
   South African taxation  170 338        265 384    
   Foreign taxation  1 178 411        981 257    
      1 348 749        1 246 641    
 

Income taxation comprises current and deferred taxation. Income taxation expense is recognised in profit or loss except to the extent that it relates to items recognised directly in other comprehensive income or equity, in which case it is recognised in other comprehensive income or equity.

Current taxation comprises taxation payable calculated on the basis of the expected taxable income for the year, using the taxation rates enacted or substantively enacted at the reporting date, and any adjustment of taxation payable for previous years.

   2018
%		    2017
%		   
The reconciliation of the effective taxation rate with the South African company taxation rate is:         
Taxation for the year as a percentage of profit before taxation 24,8   23,6  
Associates 0,2   0,1  
Effective rate excluding associate income 25,0   23,7   
Dividend and exempt income 1,1   1,1   
Foreign taxation rate differential 2,5   3,1   
Non-deductible expenses (2,5)   (2,7)   
Deferred taxation assets not previously raised 1,6   1,9   
Exempt portion of capital gains 0,1   0,7   
Changes in prior years’ estimation 0,2   0,1   
Change in rate of taxation –   0,1   
Rate of South African company taxation (%) 28,0   28,0   

Non-deductible expenses comprise impairments relating to goodwill (refer note 8.3), property, plant and equipment (refer note 7.1) and other non-deductible expenses individually insignificant across the group.
      2018 
R’000 		    2017 
R’000 		   
5.2  Deferred taxation             
   Deferred taxation assets  941 851     922 847    
   Deferred taxation liabilities  (776 085)    (743 471)   
   Net deferred taxation asset  165 766     179 376    
   Movement in net deferred taxation assets and liabilities             
   Balance at beginning of year  179 376     (32 477)   
   Current deferred taxation charge  (16 955)    157 328    
   Items recognised directly in equity and other comprehensive income  354     (5 871)   
   On acquisition of businesses  (3 914)    56 666    
   On disposal of businesses  –     69    
   Transfer to discontinued operations  5 138     –    
   Exchange rate adjustments  1 767     3 661    
   Balance at end of year  165 766     179 376    
   Temporary differences  Assets 
R’000 		 Liabilities 
R’000 		 Net 
R’000 		   
   2018             
   Differential between carrying values and tax values of property, plant and equipment    (16 575)   (319 915)   (336 490)   
   Differential between carrying values and tax values of intangible assets  34 983  (68 342) (33 359)   
   Estimated taxation losses  78 998  (2 730) 76 268    
   Staff-related allowances and liabilities  231 786  24 119  255 905    
   Operating lease liabilities  31 211  (602) 30 609    
   Inventories  14 756  597  15 353    
   Investments  –  (149 779) (149 779)   
   Trade and other receivables  78 288  5 607  83 895    
   Trade, other payables and provisions  488 404  (265 040) 223 364    
      941 851  (776 085) 165 766    
   2017             
   Differential between carrying values and tax values of property, plant and equipment    (17 970)   (240 805)   (258 775)   
   Differential between carrying values and tax values of intangible assets  28 196  (60 915) (32 719)   
   Estimated taxation losses  66 046  787  66 833    
   Staff-related allowances and liabilities  234 700  14 947  249 647    
   Operating lease liabilities  6 445  (71) 6 374    
   Inventories  15 289  477  15 766    
   Investments  –  (182 453) (182 453)   
   Trade and other receivables  71 608  5 085  76 693    
   Trade, other payables and provisions  518 533  (280 523) 238 010    
      922 847  (743 471) 179 376    
 

Deferred taxation has been provided at rates ranging between 15% and 35% (2017: 12% and 34%). The variance in rates arises as a result of the differing taxation and capital gains taxation rates present in the various countries in which the group operates.

   2018 
R’000 		    2017 
R’000 		   
Estimated tax losses available for offset against future taxable income  151 072     431 854    
Utilised in the computation of deferred taxation  (71 643)    (290 954)   
Not accounted for in deferred taxation  79 429     140 900    

Deferred taxation assets have not been recognised in respect of certain tax losses as the directors believe it is not probable that the relevant companies will generate taxable profit in the near future, against which the benefits can be utilised.

Deferred taxation is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities using tax rates enacted or substantively enacted at the reporting date.

The following temporary differences are not provided for: initial recognition of goodwill, the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit, and differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. Deferred taxation is charged to the statement of profit or loss except to the extent that it relates to a transaction that is recognised directly in other comprehensive income or equity, or a business combination that is an acquisition. The effects on deferred taxation of any changes in tax rates is recognised in the statement of profit or loss, except to the extent that it relates to items previously charged or credited directly to other comprehensive income or equity.

A deferred taxation asset is recognised to the extent that it is probable that future taxable profits will be available against which the associated unused tax losses and deductible temporary differences can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

      2018 
R’000 		    2017 
R’000 		   
5.3  Taxation paid             
   Amounts payable at beginning of year  (413 079)    (394 640)   
   Current taxation charge  (1 332 830)    (1 428 414)   
   Businesses acquired  1 263     (11 509)   
   Businesses disposed of  –     2 554    
   Exchange rate adjustments  (18 795)    77 688    
   Amounts payable at end of year  367 846     413 079    
   Amounts paid  (1 395 595)    (1 341 242)