Investor Presentaiton
Armour Energy and controlled entities
Financial report continued
Notes to the consolidated financial statements continued
NOTE 8. INCOME TAX CONTINUED
(B) RECONCILIATION OF NET DEFERRED TAX
Reconciliation of net deferred tax
Prior year
Opening
Net charged
balance
to income
1 July 2018
Net charged to other
comprehensive
income
Net charged
to equity
armourenergy.com.au
Closing
Balance
30 June 2019
Opening
balance
Net charged
Net charged to other
comprehensive
Deferred tax asset
to income
income
Net charged
to equity
Closing
Balance
Carried forward losses
12,196,242
Accruals/ Provisions
145,081
(3,691,154)
60,803
8,505,088
205,884
1 July 2019
30 June 2020
Property, Plant & Equipment (Armour)
Capital raising costs through P&L
Capital raising costs in equity
12,572
203,757
65,523
(94,760)
(26,626)
8,505,088
(5,560,815)
205,884
116,569
12,572
108,998
(37,275)
88,307
(40,882)
1,378,837
781,927
1,361,531
264,504
298,062
7,664
2,944,273
322,453
12,572
71,723
73,699
121,124
Provision for rehabilitation
Financial assets at fair value through
other comprehensive income
Amortisation of Convertible Notes
Amortisation of Tribeca Facility
1,378,837
12,572
108,997
49,410
88,307
1,378,837
143,830
638,097
781,927
834,970
526,561
264,504
1,361,531
264,504
1,378,837
446,252
1,228,179
Potential benefit at 30%
14,980,812
(2,960,672)
638,097
49,410
12,707,647
1,361,531
562,566
Deferred tax liability
50,639
58,303
Exploration & Evaluation assets
Oil & Gas assets
(13,551,293)
(1,429,519)
521,969
1,751,196
(13,029,324)
321,677
12,707,648
(5,216,677)
446,252
124,338
8,061,561
Potential benefit at 30%
(14,980,812)
2,273,165
(12,707,647)
For personal lien only.
Tax benefit at 30%
11,949,570
4,045,786
Deferred tax assets not recognised
Unused tax losses
39,831,901
13,485,952
Net deferred tax
Potential benefit at 30%
(12,707,647)
4,740,366
Oil & Gas assets
Deferred tax liability
Exploration & Evaluation assets
(13,029,324)
321,677
4,380,747
332,453
27,166
Deferred tax asset
Carried forward tax losses
Accruals/provisions
Property, Plant & Equipment (Armour)
Capital raising costs through P&L
Capital raising costs in equity
Provision for rehabilitation (Surat Basin)
Available for sale financial assets
Amortisation of Convertible Notes
Amortisation of Tribeca Facility
Lease Liabilities
72
(687,507)
638,097
49,410
(94,280)
(8,648,577)
654,130
(67,114)
Net deferred tax
Deferred tax assets not recognised
Unused tax losses
30,127,464
9,704,437
(94,280)
(8,061,561)
Tax benefit at 30%
9,038,239
2,911,331
(476,310)
446,252
30,058
53,317,853
39,831,901
11,949,570
In order to recoup carried forward losses in future periods, either the Continuity of Ownership Test (COT) or Same Business Test
(SBT) must be passed. The majority of losses are carried forward at 30 June 2020 under COT. Deferred tax assets which have not
been recognised as an asset, will only be obtained if:
15,995,356
1.
The Group derives future assessable income of a nature and of an amount sufficient to enable the losses to be realised.
2.
The Group continues to comply with the conditions for deductibility imposed by the law; and
3.
No changes in tax legislation adversely affect the Group in realising the losses.
(C) PETROLEUM RESOURCES RENT TAX
On 19 March 2012, the Australian Government passed through the Senate, the Petroleum Resource Rent Tax Act 2012, with
application to certain profits arising from petroleum extracted in Australia. In broad terms, the tax was imposed on a project-
by-project basis. A bill was introduced in the Australian Parliament on 13 February 2019 to reform the Petroleum Rent Resource
Tax (PRRT) measures in Australia. Schedule 2 of the reform bill relates to onshore petroleum projects, and from 1 July 2019 PRRT
ceased to apply. The reform subsequently received Royal Assent and was enacted on 5 April 2019 without any amendments.
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