Notes to the financial statements | Note 17

17. Deferred taxation
 
    Group  Company 
    31 March 
2022 
Rm 		  
31 March 
2021 
Rm 		 31 March 
2022 
Rm 
31 March 
2021 
Rm 
Deferred taxation  71  497  (28) 376 
Opening balance  497  675  376  575 
Profit and loss and opening balance movements  (348) (197) (325) (218)
Capital allowances  (493) (156) (566) (154)
Provisions and other allowances  (186) (196) (128) (264)
Tax losses1  353  234  345  234 
Overprovision/(underprovision) prior year1  (6) (88) 39  (34)
Rate change2  (24) –  (15) – 
Common control transactions/business combinations  8  9  –   – 
Other comprehensive income deferred tax impact1  (78) 19  (79) 19 
         
The balance comprises:  71  497  (28) 376 
Capital allowance  (3 628) (3 247) (3 654) (3 222)
Provisions and other allowances  3 215  3 468  3 038  3 218 
Business combination  (49) (39) –  – 
Common control transaction  (30) (32) –  – 
Tax losses  1 028  733  1 017  730 
Other comprehensive income tax impact  (465) (386) (429) (350)
         
Deferred taxation balance is made up as follows:1  71  497  (28) 376 
Deferred taxation assets  308  723  –  376 
Deferred taxation liabilities  (237) (226) (28) – 
1 The decrease of R426 million in the deferred tax asset (DTA) balance is attributable to the following:
  • R347 million is the net movement in temporary differences through the statement of profit or loss, primarily as a result of a deferred tax liability (DTL) attributable to fixed assets or movement in provisions, set off by the DTA recognised on tax losses; and
  • R79 million movement through other comprehensive income (OCI) due to the additional liability raised in Telkom SA SOC Ltd, including actuarial gains recognised on the postemployment benefit plans.
2 As per the announcement by the Minister of Finance in the 2022 budget speech, the corporate
tax rate is changing from 28% to 27% effective for years of assessment ending on or after
31 March 2023. The reduction of the corporate tax rate resulted in a reduction of the Group's
deferred tax asset balance to align to the future utilisation thereof.