Westgold Resources Limited Annual Report 2020

77 Westgold Resources Limited Annual Report 2020 2020 2019 (c) A reconciliation of income tax benefit and the product of accounting loss before income tax multiplied by the Group's applicable income tax rate is as follows: Accounting profit (loss) before tax from continuing operations 43,862,432 12,680,022 Accounting profit (loss) before tax from discontinuing operations – (1,813,885) Total accounting profit before income tax 43,862,432 10,866,137 At statutory income tax rate of 30% (2019: 30%) 13,158,730 3,259,841 Non-deductible (non-assessable) items (2,978,238) (3,820,162) Under/over in respect of prior years (925,375) (2,703,605) Income tax expense (benefit) reported in the income statement 9,255,117 (3,263,926) Tax expense from continuing operations 9,255,117 (807,116) Tax (benefit) expense from discontinued operations – (2,456,810) Income tax expense (benefit) reported in the income statement 9,255,117 (3,263,926) (d) Deferred income tax at 30 June relates to the following: Consolidated Statement of Financial Position Consolidated Statement of Comprehensive Income 2020 2019 2020 2019 Deferred tax liabilities Exploration (7,823,986) (20,510,089) (12,686,103) (19,034,322) Trade and other receivables (608,739) (658,745) (50,006) 127,935 Net gain on financial assets AFVTP (3,900,000) (6,414,195) (2,514,195) 6,414,195 Prepayments (18,830) (13,510) 5,320 13,510 Deferred mining (60,595,582) (32,846,809) 27,748,773 (9,297,893) Inventories (5,691,339) (4,384,707) 1,306,632 692,722 Property plant and equipment 291,063 (1,857,819) (2,148,882) (3,941,116) Gross deferred tax liabilities (78,347,413) (66,685,874) Deferred tax assets Financial assets at FVTPL – – – 742,758 Accrued expenses 534,117 524,056 (10,061) (211,596) Provision for employee entitlements 3,487,834 2,780,744 (707,090) (738,524) Provision for rehabilitation 16,643,909 8,996,764 (7,647,145) 20,688,073 Business related costs 83,205 46,920 (36,285) (46,920) Capital raising costs 1,227,768 891,540 – (198,394) Recognised tax losses 16,711,513 18,445,434 1,733,921 (2,530,605) Gross deferred tax assets 38,688,346 31,685,458 Net deferred tax liabilities (39,659,067) (35,000,416) Deferred tax expense (income) 4,994,879 (7,320,177) (e) Unrecognised losses At 30 June 2020, there are no unrecognised losses for the Group (2019: nil). 8. INCOME TAX (CONTINUED)