Page 46 - NZPM Annual Report 2020

NZPM GROUP LIMITED
Notes to the Consolidated Financial Statements for the year ended 31 March 2020

9.1. Dividends

Dividends on redeemable preference shares are authorised and payable quarterly in arrears (the quarterly periods end on the last
days of February, May, August and November in each year). All dividends paid were fully imputed.

9.2. Rebate dividends
On 27 June 2019 the company declared a gross rebate dividend for the year ended 31 March 2019 to all ordinary shareholders that
was the greater of $300 or 5.0% of their Grade A cash. The 2019 rebate dividend was paid on 26 September 2019 to all ordinary
shareholders on the share register on the date of payment who were not in default of their monthly obligations. The rebate dividend
was fully imputed.

2020 2019
9.3. Imputation credit account
$’000 $’000
Imputation credits available for future distribution 12,762 10,834

Imputation is a mechanism that a company uses to pass on credits for tax it has paid on its profits, to its shareholders when it pays
dividends.

10. Taxation
2020 2019
$’000 $’000
10.1. Income tax expense
The charge for the year can be reconciled to the profit before tax as follows:
Profit before tax 2,640 5,774
Tax calculated at 28% (2019: 28%) 739 1,617

Adjusted for the tax effect of:
Non deductible expenditure 1,686 1,369
Reintroduction of tax depreciation on buildings 48 0
Income tax over provided in prior year (103) (17)
Income tax expense 2,370 2,969

Income tax comprises:
Current year income tax payable (see note 10.2) 2,927 3,023
Adjustments in respect of prior year (163) (17)
Deferred taxation (see note 10.3) (394) (37)
Income tax expense 2,370 2,969

10.2. Taxation payable
The following table details the movement in income tax receivable/(payable) during the current and prior year.

Balance at 1 April (2,182) (1,570)
Current year income tax payable (2,927) (3,023)
Net taxation paid 4,158 2,394
Adjustments in respect of prior year 163 17
Taxation payable (788) (2,182)

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NZPM GROUP LIMITED ANNUAL REPORT 2020