44 annual report 2012  kAThMANdu 5  INCOME TAX EXPENSE Group pArent 2012 nZ$’000 2011 nZ$’000 2012 nZ$’000 2011 nZ$’000 Income statement Current income tax charge 17,053 17,237 (154) (339) Deferred income tax charge (refer note 15) (779) 914 - 445 Income tax charge / (credit) reported in income statement 16,274 18,151 (154) 106 reconciliation of effective tax charge Profit before income tax 51,126 57,217 18,127 18,522 Income tax calculated at 28% (2011: 30%) 14,315 17,165 5,075 5,557 Adjustments to taxation: Adjustments due to different rate in different jurisdictions 654 51 - - Non-taxable income - - (5,600) (6,000) Expenses not deductible for tax purposes 946 967 31 189 Effect of change in corporate tax rate - 13 - (5) Utilisation of tax losses by group companies - - - 365 Tax expense transferred to foreign currency translation reserve 464 202 - - Adjustments in respect of prior years (105) (247) 340 - Income tax charge / (credit) reported in income statement 16,274 18,151 (154) 106 unrecognised tax losses the group has estimated tax losses to carry forward from Kathmandu (u.K.) limited of £7,290,184 (nZ$14,350,756) (2011:  £5,743,723 (nZ$12,016,157)) which can be carried forward to be offset against future profits generated within the uK. the above amounts represent the balance of the imputation account as at the end of July 2012, adjusted for: the balance of australian franking credits able to be used by the Group as at 31 July 2012 is a$3,369,445 (2011: a$836,783). ImputAtIon CreDItS Group pArent 2012 nZ$’000 2011 nZ$’000 2012 nZ$’000 2011 nZ$’000 Imputation credits available for use in subsequent reporting periods 3,554 4,479 (1) - Imputation credits that will arise from the payment of the amount of the provision for income tax; Imputation debits that will arise from the payment of dividends recognised as a liability at the reporting date; and Imputation credits that will arise from the receipt of dividends recognised as receivables at the reporting date. 