KUWAIT ENERGY plc GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2012
F-101
12.
TAXATION (CONTINUED)
Factors affecting the tax charge for the period
The difference between the amount of total tax shown above and the amount calculated by applying the
standard rate of Jersey corporation tax to the profit before tax is as follows:
2012
2011
USD 000’s
USD 000’s
Profit on ordinary activities before tax
46,917
44,632
Tax on Company profit on ordinary activities at corporation tax rate of
0%
-
-
Effects of:
Effect of different tax rates of subsidiaries operating in other
jurisdictions
14,849
15,614
Income not taxable or expenses not deductible
(5,570)
(6,481)
(Gain) / loss on deferred tax movement
(7,326)
736
Total tax charge for the year
1,953
9,869
Deferred taxation
2012
2011
Deferred taxation is comprised as follows:
USD 000’s
USD 000’s
Deferred tax asset arising on the recognition of tax losses
8,404
8,970
Deferred tax liability on fixed asset temporary differences
(24,053)
(31,379)
(15,649)
(22,409)
The deferred tax asset shown above primarily arises in Russia, where losses have been incurred in both 2011 and
2012. Management believes it is appropriate to recognize a deferred tax asset, as based on an independent
assessment of its commercial reserves, it expects to generate sufficient taxable profits in future years in Russia.
There are no material unrecognized deferred tax assets at either year end, nor any material unprovided deferred
tax arising on the unremitted earnings of subsidiaries.
13.
INTANGIBLE EXPLORATION AND EVALUATION (‘E&E’) ASSETS
E&E assets
USD 000’s
Cost
As at 1 January 2011
243,964
Additions
36,273
Transfer to Property, plant and equipment
(131,036)
As at 31 December 2011
149,201
Additions
37,447
Exploration expenditure written off
(3,680)
As at 31 December 2012
182,968
