CHAPTER 7:Taxation

	Group		Company
At 31 December	2020 Rm	2019 Rm	2020 Rm	2019 Rm
The movements on deferred tax are as follows:
At beginning of the year	(6 671)	(6 351)	296	374
Items charged to profit or loss	266	(258)	145	(31)
– Current year	235	(317)	145	(59)
– Prior year	31	59		28
Items charged directly to equity	30	(72)	18	(47)
– Share-based payments movement	30	(72)	18	(47)
Items charged directly to other comprehensive income	111	(7)
– Cash flow hedges	120
– Retirement employee obligations	(9)	(7)
Reclassification to non-current assets held-for-sale	21
Acquisition of subsidiaries	(917)
Derecognised on loss of control of subsidiary		17
At end of the year	(7 160)	(6 671)	459	296
Deferred tax asset	1 076	467	459	296
Deferred tax liability	(8 236)	(7 138)

	Group
	At 31 December 2019
	Assets Rm	Liabilities Rm	Total net liability Rm

Property, plant and equipment	588	(7 257)	(6 669)
Customer contracts
Right-of-use assets	(141)	2	(139)
Share-based payments	115	40	155
Other accruals and provisions	(41)	553	512
Bad debt reassessment	21	24	45
Restoration provisions	425	256	681
Decommissioning provisions	96	56	152
Leave pay accrual	28	29	57
Retention payables	57	107	164
Prepayments	(14)	(23)	(37)
Environmental rehabilitation funds	(294)	(257)	(551)
Income received in advance	7		7
Inventories	(8)	17	9
Lease receivables		(19)	(19)
Local tax losses carried forward	310	55	365
Revaluation of financial assets at FVOCI		(82)	(82)
Retirement employee obligations	51	5	56
Deferred tax assets not recognised or derecognised	(879)	(447)	(1 326)
Investment in RBCT		(196)	(196)
Unclaimed donations	10		10
Lease liabilities	136	(1)	135
Cash flow hedge reserve
Contributions to Exxaro ESOP Trust

Total	467	(7 138)	(6 671)

	Group
	Movement during the year					At 31 December 2020
	Recognised in profit or loss Rm	Acquisition of subsidiaries Rm	Recognised in OCI Rm	Reclassification to non-current assets held-for-sale Rm	Recognised directly in equity Rm	Assets Rm	Liabilities Rm	Total net liability Rm

Property, plant and equipment	41	(1 151)		21		(933)	(6 825)	(7 758)
Customer contracts		(752)					(752)	(752)
Right-of-use assets	22	(14)				(138)	7	(131)
Share-based payments	(13)				30	121	51	172
Other accruals and provisions	(317)					(2)	197	195
Bad debt reassessment						40	5	45
Restoration provisions	(154)					151	376	527
Decommissioning provisions	(66)	11				37	60	97
Leave pay accrual	9					30	36	66
Retention payables	(32)					21	111	132
Prepayments	(6)					(11)	(32)	(43)
Environmental rehabilitation funds	14					(62)	(475)	(537)
Income received in advance						6	1	7
Inventories	4					(9)	22	13
Lease receivables	2						(17)	(17)
Local tax losses carried forward	397	974				1 287	449	1 736
Revaluation of financial assets at FVOCI							(82)	(82)
Retirement employee obligations	(6)		(9)			41		41
Deferred tax assets not recognised or derecognised	182					111	(1 255)	(1 144)
Investment in RBCT							(196)	(196)
Unclaimed donations	62					72		72
Lease liabilities	1	15				145	6	151
Cash flow hedge reserve			120			122	(2)	120
Contributions to Exxaro ESOP Trust	126					47	79	126

Total	266	(917)	111	21	30	1 076	(8 236)	(7 160)

	Company
	At 31 December 2019	Movement during the year		At 31 December 2020
	Total asset Rm	Recognised in profit or loss Rm	Recognised directly in equity Rm	Total asset¹Rm
Property, plant and equipment	(38)	19		(19)
Right-of-use assets	(123)			(123)
Share-based payments	99	(10)	18	107
Other accruals and provisions	51	(24)		27
Bad debt reassessment	3	20		23
Restoration provisions	10			10
Leave pay accrual	7	2		9
Environmental rehabilitation funds	(8)			(8)
Lease liabilities	130	(3)		127
Capital losses	165	121		286
Unclaimed donations		16		16
Contributions to Exxaro ESOP Trust		4		4
Total	296	145	18	459

¹	The deferred tax asset recognised for the company is supported by sufficient forecast profits to be utilised. The forecast profits are based on agreements in place with commodity businesses within Exxaro and other external parties.

Tax on calculated assessable losses and unredeemed capital expenditure

	Group
At 31 December	2020 Rm	2019 Rm
Deferred tax assets not recognised, relating to:
– Local accumulated tax losses	(1 227)	(1 304)
– Current year tax losses calculated	(511)	329
– Unredeemed capital expenditure	(867)	(815)

Exxaro report selector 2020