XML 45 R28.htm IDEA: XBRL DOCUMENT
v3.19.1

Tax matters | 12 Months Ended
--- | ---
Dec. 31, 2018
Tax matters |
Tax matters | 22. Tax matters The components of current and deferred income tax expense (benefit) are as follows:
|  | 2018 |  | 2017 |  | 2016
|  | US$'000 |  | US$'000 |  | US$'000
Consolidated income statement |  |  |  |  |  |
Current income tax |  |  |  |  |  |
Current income tax charge/(credit) |  | 22,795 |  | 30,491 |  | (14,885)
Adjustments in current income tax in respect of prior years |  | (865) |  | 753 |  | 1,220
Total |  | 21,930 |  | 31,244 |  | (13,665)
Deferred tax |  |  |  |  |  |
Origination and reversal of temporary differences |  | 2,500 |  | (14,857) |  | (33,030)
Impact of tax rate changes |  | 98 |  | (31,688) |  | —
Adjustments in deferred tax in respect of prior years |  | (293) |  | 480 |  | —
Total |  | 2,305 |  | (46,065) |  | (33,030)
Income tax expense (benefit) |  | 24,235 |  | (14,821) |  | (46,695)
As the Company has significant business operations in Spain, France, South Africa and the United States, a weighted effective tax rate is considered to be appropriate in estimating the Company’s expected tax rate. The following is a reconciliation of tax expense based on a weighted blended statutory income tax rate to our effective income tax expense for the years ended December 31, 2018, 2017, and 2016:
|  | 2018 |  | 2017 |  | 2016
|  | US$'000 |  | US$'000 |  | US$'000
Accounting profit/(loss) before income tax |  | 48,808 |  | (20,643) |  | (405,308)
At weighted effective tax rate of 36% (2017: 31% and 2016: 31%) |  | 17,409 |  | (6,399) |  | (125,645)
Non-taxable income/(expenses) |  | (14,856) |  | 96 |  | —
Non-deductible expenses |  | 25,079 |  | 18,278 |  | 81,648
Movements in unprovided deferred tax |  | 7,620 |  | 7,138 |  | 15,326
US Tax Reform - federal tax rate change |  | — |  | (31,257) |  | —
Differing territorial tax rates |  | (2,262) |  | 2 |  | (22,949)
Adjustments in respect of prior periods |  | (1,038) |  | 1,233 |  | —
Other items |  | (4,936) |  | (845) |  | 890
Elimination of effect of interest in joint ventures |  | 1,079 |  | 1,458 |  | —
Other permanent differences |  | 1,242 |  | (1,685) |  | 5,196
Incentives and deductions |  | (6,944) |  | (3,188) |  | (1,161)
US State taxes |  | 1,235 |  | 348 |  | —
Taxable capital gains |  | 607 |  | — |  | —
Income tax (expense)/benefit |  | 24,235 |  | (14,821) |  | (46,695)
The Tax Cuts and Jobs Act (“TCJA”) was enacted into law on December 22, 2017. The material impact of the TCJA on the Company's 2017 position was a deferred tax credit of $31.2 million representing the remeasurement of the Company’s U.S. net deferred tax liability as a consequence of the reduction of the U.S. federal corporate statutory tax rate from 35% to 21% with effect from January 1, 2018. A one-off tax charge of $1.7 million representing the Company’s best estimate of its transition tax liability was recorded in 2017 and reversed in the current period following a comprehensive review of the foreign historic earnings and profits subject to tax under the new law. Current tax assets and liabilities
|  | 2018 |  | 2017
|  | US$'000 |  | US$'000
Current tax assets |  |  |  |
Income tax receivable |  | 27,404 |  | 17,158
Current tax liabilities |  |  |  |
Income tax payable |  | 2,335 |  | 7,419
Net tax assets |  | 25,069 |  | 9,739
Deferred tax assets and liabilities For the year ended December 31, 2018:
|  | Opening |  | Prior Year |  | Recognised in |  | Recognised in |  | Acquisitions/ |  | Exchange |  | Closing
|  | Balance |  | Charge |  | P&L |  | Equity/ OCI |  | Disposals |  | Differences |  | Balance
|  | US$'000 |  | US$'000 |  | US$'000 |  | US$'000 |  | US$'000 |  | US$'000 |  | US$'000
Intangible assets |  | (2,442) |  | 1,787 |  | 236 |  | — |  | — |  | — |  | (419)
Biological assets |  | (5,521) |  | — |  | 2,233 |  | — |  | — |  | 448 |  | (2,840)
Provisions |  | 25,534 |  | (3,388) |  | (1,353) |  | 93 |  | 210 |  | (1,146) |  | 19,950
Property, plant & equipment |  | (79,758) |  | (3,409) |  | 3,562 |  | — |  | (1,682) |  | 3,002 |  | (78,285)
Inventories |  | (243) |  | (3) |  | (2,673) |  | 256 |  | 42 |  | (12) |  | (2,633)
Hedging Instruments |  | 1,239 |  | 15 |  | 7 |  | (197) |  | — |  | (54) |  | 1,010
Tax losses, incentives & credits |  | 20,723 |  | 343 |  | (7,249) |  | (489) |  | 1,179 |  | (877) |  | 13,630
Partnership interest |  | (13,373) |  | (349) |  | 1,197 |  | — |  | — |  | — |  | (12,525)
Other |  | (6,028) |  | 4,514 |  | 770 |  | — |  | — |  | 66 |  | (678)
Total |  | (59,869) |  | (490) |  | (3,270) |  | (337) |  | (251) |  | 1,427 |  | (62,790)
Presented in the statement of financial position as follows:
|  | 2018 |  | 2017
|  | US$'000 |  | US$'000
Deferred tax assets |  | 14,589 |  | 5,273
Deferred tax liabilities |  | 77,379 |  | 65,142
Net Total Deferred Tax Asset / (Liability) |  | (62,790) |  | (59,869)
Unrecognised deductible temporary differences, unused tax losses and unused tax credits
|  | 2018 |  | 2017
|  | US$'000 |  | US$'000
Unused tax losses |  | 396,119 |  | 391,997
Unused tax credits |  | 7,963 |  | 8,028
Unrecognised deductible temporary differences |  | 79,377 |  | 65,638
Total |  | 483,459 |  | 465,663
Management of tax risks The Company is committed to conducting its tax affairs consistent with the following objectives:
| (i) |  | to comply with relevant laws, rules, regulations, and reporting and disclosure requirements in whichever jurisdiction it operates;
| (ii) |  | to maintain mutual trust, transparency and respect in its dealings with all tax authorities; and
| (iii) |  | to adhere with best practice and comply with the Company's internal corporate governance procedures, including but not limited to its Code of Conduct
In the jurisdictions in which the Company operates, tax returns cannot be deemed final until they have been audited by the tax authorities or until the statute-of-limitations has expired. The number of open tax years subject to examination varies depending on the tax jurisdiction. In general, the Company has the last four years open to review. The criteria that the tax authorities might adopt in relation to the years open for review could give rise to tax liabilities which cannot be quantified.

X
- Definition The entire disclosure for income taxes. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IAS -Number 12 -IssueDate 2018-01-01 -Section Disclosure -URI http://eifrs.ifrs.org/eifrs/XBRL?type=IAS&num=12&date=2018-03-01&anchor=sect_Disclosure&doctype=Standard -URIDate 2018-03-16 + Details
Name: | ifrs-full_DisclosureOfIncomeTaxExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | ifrs-full_MajorComponentsOfTaxExpenseIncomeAbstract
Namespace Prefix: | ifrs-full_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration