Caledonia Mining Corp Plc | CIK:0000766011 | 3

  • Filed: 4/2/2018
  • Entity registrant name: Caledonia Mining Corp Plc (CIK: 0000766011)
  • Generator: Thunderdome
  • SEC filing page: http://www.sec.gov/Archives/edgar/data/766011/000117184318002450/0001171843-18-002450-index.htm
  • XBRL Instance: http://www.sec.gov/Archives/edgar/data/766011/000117184318002450/cmcl-20171231.xml
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    • ifrs-full:DisclosureOfIncomeTaxExplanatory

    14
    Tax expense
     
        2017     2016     2015  
    Tax recognised in profit or loss                        
                             
    Current tax    
    4,995
    		      
    3,106
    		      
    (197
    		 )
    Income tax– current year    
    3,702
    		      
    2,414
    		      
    506
    		  
    Income tax – Prior year under provision    
    71
    		      
    49
    		      
    (1,636
    		 )
    Withholding tax expense    
    1,222
    		      
    643
    		      
    933
    		  
                             
    Deferred tax expense    
    3,696
    		      
    4,611
    		      
    2,567
    		  
    Origination and reversal of temporary differences    
    3,696
    		      
    4,611
    		      
    2,567
    		  
                             
    Tax expense – recognised in profit or loss    
    8,691
    		      
    7,717
    		      
    2,370
    		  
                             
    Tax recognised in other comprehensive income                        
                             
    Income tax - current year    
    -
    		      
    -
    		      
    (199
    		 )
    Tax expense    
    8,691
    		      
    7,717
    		      
    2,171
    		  
     
    Unrecognised deferred tax assets
     
        2017     2016  
                     
    Tax losses carried forward    
    5,105
    		      
    4,989
    		  
     
    Taxable losses do
    not
    expire for the entities incurring taxable losses within the group. Tax losses carried forward relate to Greenstone Management Services Holdings Limited (UK) and Eersteling Gold Mine Limited. Deferred tax assets have
    not
    been recognised in these entities as future taxable income is
    not
    deemed probable to utilise these losses against.
     
    Reconciliation of tax rate
     
        2017     2016     2015  
    Profit for the year    
    11,896
    		      
    11,085
    		      
    5,590
    		  
    Total tax expense    
    8,691
    		      
    7,717
    		      
    2,370
    		  
    Profit before tax    
    20,587
    		      
    18,802
    		      
    7,960
    		  
                             
    Income tax at Company's domestic tax rate
    (1)
    		    
    -
    		      
    -
    		      
    2,109
    		  
    Tax rate differences in foreign jurisdictions    
    6,546
    		      
    6,293
    		      
    (63
    		 )
    Foreign currency difference    
    -
    		      
    -
    		      
    (12
    		 )
    Deemed interest on loans    
    -
    		      
    -
    		      
    31
    		  
    Management fee – non-deductible withholding tax portion    
    427
    		      
    427
    		      
    317
    		  
    Management fee – Withholding tax on deemed dividend portion
    (2)
    		    
    538
    		      
    -
    		      
    -
    		  
    Management fee – non-deductible income tax portion
    (2)
    		    
    925
    		      
    -
    		      
    -
    		  
    Withholding tax on intercompany dividend    
    90
    		      
    49
    		      
    -
    		  
    Non-deductible royalty expenses    
    901
    		      
    753
    		      
    632
    		  
    Other non-deductible expenditure    
    107
    		      
    64
    		      
    442
    		  
    Export incentive income credit 2016
    (3)
    		    
    (284
    		 )    
    -
    		      
    -
    		  
    Export incentive income exemption 2017
    (3)
    		    
    (630
    		 )    
    -
    		      
    -
    		  
    Change in tax estimate    
    (45
    		 )    
    49
    		      
    (1,636
    		 )
    Change in unrecognized deferred tax assets    
    116
    		      
    82
    		      
    550
    		  
    Tax expense - recognised in profit or loss    
    8,691
    		      
    7,717
    		      
    2,370
    		  
     
    (
    1
    ) Enacted tax rate in Jersey, Channel Islands is
    0%
    (
    2016:0%
    ). The domestic income tax rate of the Company changed from
    26.5%
    to
    0%
    after it re-domiciled from Canada to Jersey Channel Islands during
    2016.
    (
    2
    ) Zimbabwean tax legislation changed during
    2017
    that gave rise to an additional
    15%
    withholding tax on a portion of the intercompany management fee considered to be a deemed dividend. The new legislation resulted in this portion of the management fee being
    not
    deductible for income tax purposes in Zimbabwe from
    January 1, 2017.
    (
    3
    ) On
    March 23, 2017,
    the Zimbabwean revenue authority enacted a new finance act that provided for the export incentive income to be tax exempt. The
    2018
    finance bill indicated that the export incentive income will be tax exempt from
    June 1, 2016.
    The new finance bill resulted in an income tax credit being applied in the
    2017
    income tax calculation giving rise to a credit for the export incentive income of
    2016.
     
    Tax paid   2017     2016     2015  
                       
    Net income tax (payable)/receivable at January 1    
    (345
    		 )    
    344
    		      
    (1,617
    		 )
    Current tax (expense)/tax credit    
    (4,995
    		 )    
    (3,106
    		 )    
    197
    		  
    Income tax recognised through other comprehensive income    
     
    		      
     
    		      
    199
    		  
    Foreign currency movement    
    (17
    		 )    
    (49
    		 )    
    103
    		  
    Tax paid    
    4,212
    		      
    2,466
    		      
    1,462
    		  
    Net income tax payable at December 31    
    (1,145
    		 )    
    (345
    		 )    
    344
    		  
     
    Recognised deferred tax assets and liabilities
     
    Deferred tax assets and liabilities are attributable to the following:
     
        Assets     Liabilities     Net  
        2017     2016     2017     2016    
    *
    2017
    		     *2016  
                                         
    Property, plant and equipment    
    -
    		      
    -
    		      
    (20,985
    		 )    
    (17,092
    		 )    
    (20,985
    		 )    
    (17,092
    		 )
    Allowance for obsolete stock    
    35
    		      
    12
    		      
    -
    		      
    -
    		      
    35
    		      
    12
    		  
    Prepayments    
    -
    		      
    -
    		      
    (4
    		 )    
    (3
    		 )    
    (4
    		 )    
    (3
    		 )
    Unrealised foreign exchange    
    97
    		      
    -
    		      
    -
    		      
    -
    		      
    97
    		      
    -
    		  
    Share based payments    
    12
    		      
    -
    		      
    -
    		      
    -
    		      
    12
    		      
    -
    		  
    Provisions    
    1,290
    		      
    1,218
    		      
    -
    		      
    -
    		      
    1,290
    		      
    1,218
    		  
    Tax assets/ (liabilities)    
    1,434
    		      
    1,230
    		      
    (20,989
    		 )    
    (17,095
    		 )    
    (19,555
    		 )    
    (15,865
    		 )
     
    *
    The deferred tax liability consists of a deferred tax asset of
    $65
    (
    2016:
    $44
    ) from the South African operations and a deferred tax liability of
    $19,620
    (
    2016:
    $15,909
    ) due to the Zimbabwean operations. The amounts are in different tax jurisdictions and cannot offset. The amounts are presented as a Non-current asset and a Non-current liability in the Statement of financial position. The deferred tax asset recognised is supported by evidence of probable future taxable income.
     
    Movement in recognised deferred tax assets and liabilities
     
        Balance January 1, 2017     Recognised in profit or loss     Foreign exchange movement     Balance December 31, 2017  
    Property, plant and equipment    
    (17,092
    		 )    
    (3,893
    		 )    
    -
    		      
    (20,985
    		 )
    Allowance for obsolete stock    
    12
    		      
    23
    		      
    -
    		      
    35
    		  
    Prepayments    
    (3
    		 )    
    (1
    		 )    
    -
    		      
    (4
    		 )
    Unrealised foreign exchange    
    -
    		      
    97
    		      
    -
    		      
    97
    		  
    Share based payments    
    -
    		      
    12
    		      
    -
    		      
    12
    		  
    Provisions    
    1,218
    		      
    66
    		      
    6
    		      
    1,290
    		  
    Total    
    (15,865
    		 )    
    (3,696
    		 )    
    6
    		      
    (19,555
    		 )
     
        Balance January 1, 2016     Recognised in profit or loss     Foreign exchange movement     Balance December 31, 2016  
    Property, plant and equipment    
    (12,988
    		 )    
    (4,104
    		 )    
    -
    		      
    (17,092
    		 )
    Allowance for obsolete stock    
    -
    		      
    12
    		      
    -
    		      
    12
    		  
    Prepayments    
    (3
    		 )    
    2
    		      
    (2
    		 )    
    (3
    		 )
    Provisions    
    733
    		      
    477
    		      
    8
    		      
    1,218
    		  
    Assessed loss recognised    
    998
    		      
    (998
    		 )    
    -
    		      
    -
    		  
    Total    
    (11,260
    		 )    
    (4,611
    		 )    
    6
    		      
    (15,865
    		 )