29. TAXATION
 
Figures in Rand thousand  2020     Restated*
2019  		   

Current taxation
Local income taxation – current year  193 182     325 264     
Local income taxation – prior years  (25 920)    (16 472)    
Foreign income taxation – current year  1 775     1 799     
169 037     310 591     
Discontinued operations  84 126     185 579     
Continuing operations  84 911     125 012     
169 037     310 591     

Deferred taxation
Originating and reversing temporary differences  (164 102)    54 372     
Prior year adjustments  (13 289)    –     
(177 391)    54 372     
Discontinued operations  (28 450)    (28 803)    
Continuing operations  (148 941)    83 175     
(177 391)    54 372     

Total taxation

 		 (8 354)    364 963     
Discontinued operations  55 676     156 776     
Continuing operations  (64 030)    208 187     
Total taxation  (8 354)    364 963     

Reconciliation of rate of taxation

 %     %     
South African normal rate of taxation  (28.0)    (28.0)    
Reduction in rate for the year, due to: 
   Exempt income  (1.5)    (1.3)    
   Foreign taxation rate differences  (0.9)    0.1     
   Disallowable gain on disposal  (3.2)    (4.3)    
   Prior year adjustments to over/(underprovision) of deferred taxation/current taxation  (7.7)    (0.4)    
   Share of profits of equity-accounted investments  (0.3)    0.1     
Increase in rate for the year, due to: 
   Effect of utilised/not utilised estimated tax losses  11.9     13.3     
   Non-deductible expenditure**  19.6     23.3     
   Capital gains taxation  4.1     0.7     
   Effect of unutilised temporary differences  5.5     4.6     
(0.5)    8.1     

Unrecognised deferred taxation assets
Deferred taxation assets not recognised in respect of deductible temporary differences  1 016 237     716 665     
Deferred taxation assets not recognised in respect of taxation losses  2 972 593     3 281 246     
3 988 830     3 997 911     
* Comparative figures previously reported have been amended to reflect continuing operations prevailing for the year ended 31 July 2020.
** The non-deductible expenditure relates mainly to impairment losses recognised (-12%) and non-deductible finance charges related to acquisition of loan funding (-3%).
 

The deductible temporary differences do not expire under the current taxation legislation.

Deferred tax assets have been recognised to the extent that the realisation of the related tax through future taxable profits is probable. An assessment of future taxable profits has been performed at a relevant subsidiary level based on budgets that take into account the impact of COVID-19.

In 2020, R243 million (2019: R105 million) of previously unrecognised taxation losses were recognised as management considered it probable that future taxable profits would be available against which they can be utilised in the next three years.

Estimates were made in assessing the tax liability, especially with regards to uncertain tax positions and the findings of the ENS investigation.