Interfront Annual Report 2022

PART E: FINANCIAL INFORMATION 103 International Frontier Technologies SOC Ltd Trading as Interfront Financial Statements for the year ended 31 March 2022 18. Taxation Major components of the tax (income)/expense Taxation Current Local income tax - current period 574 110 (327 702) Local income tax - recognised in current tax for prior periods 2 400 (29 275) 576 510 (356 977) Deferred Deferred tax movement current year (2 227 945) (2 225 020) (1 651 435) (2 581 997) Reconciliation of the tax expense Reconciliation between accounting surplus and tax expense. Accounting deficit (8 035 402) (11 351 725) Tax at the applicable tax rate of 28% (2021: 28%) (2 249 913) (3 178 483) Tax effect of adjustments on taxable income Originating temporary difference 2 151 289 2 225 021 Non-deductible difference 571 875 625 760 Prior year under/over provision 2 400 (29 275) Reduction in deferred tax movement for the year due to rate change effective April 2022 100 858 - 576 509 (356 977) 19. Operating Deficit Operating deficit for the year is stated after accounting for the following: Gain/(Loss) on disposal of assets 16 085 (26 125) Amortisation on intangible assets 8 251 744 8 357 176 Depreciation on property plant and equipment 3 247 948 1 977 407 Figures in Rand 2022 2021