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Deferred Tax and Income Tax
 12 Months Ended
Jun. 30, 2023
Deferred Tax and Income Tax [Abstract]  
Deferred tax and income tax

Note 21. Deferred tax and income tax

 

The roll forward of net deferred tax as of June 30, 2023, 2022, 2021 and 2020 is as follows:

 

   2023   2022   2021   2020 
Balance at beginning of year  $
-
    
-
    
-
    
-
 
Incorporated through the business combination   1,297,436    
-
    
-
    
-
 
Credited to profit & loss   (234,542)   
-
    
-
    
-
 
Charged to Other Comprehensive Income   8,913    
-
    
-
    
-
 
Balance at year end  $1,071,807    
-
    
-
    
-
 

 

Principal statutory taxes rates in the countries where the Group operates for all the years presented are:

 

  Income tax rate 
Tax Jurisdiction  2023   2022   2021   2020 
Argentina   25%-35%   
-
    
-
    
-
 
Luxembourg   15%   
-
    
-
    
-
 
United Kingdom   19%   19%   19%   19%
United States of America   21%   21%   21%   21%

 

Reconciliation of effective tax rate

 

The Group’s reconciliation of the effective tax rate is based on its domestic tax rate, with a reconciling item in respect of tax rates applied by Group companies in other jurisdictions. 

 

The tax rate used for 2023 represents the corporate tax rate of 15% from Luxembourg on the taxable income payable by the Group, in accordance with the tax laws of said jurisdiction. Income tax for other jurisdictions is calculated based on the substantially enacted nominal tax rates prevailing in the respective jurisdictions.

 

   As of
June 30,
2023		   As of
June 30,
2022		   As of
June 30,
2021		   As of December 30, 2020 
Loss before tax  $(52,023,422)   (4,526,905)   (1,986,814)   (320,524)
Corporate tax rate   15%   19%   19%   19%
Income tax (benefit)/expense   7,803,513    860,112    377,495    60,900 
Effect of difference tax rates subsidiaries operating in other jurisdictions   428,506    
-
    
-
    
-
 
Tax losses (i)   (1,631,947)   (860,112)   (377,495)   (60,900)
Non-deductible expenses - listing cost   (6,405,759)   
-
    
-
    
-
 
Net gain on inflation effect on monetary items   52,914    
-
    
-
    
-
 
Income tax inflation adjustment   (35,826)   
-
    
-
    
-
 
Others   23,141    
-
    
-
    
-
 
Tax benefit for the year   234,542    
-
    
-
    
-
 

 

(i)Deferred tax assets have not been recognized, because it is not probable that future taxable profit will be available against which the Group can use the benefits therefrom.

 

Deferred tax

 

Deferred tax assets and liabilities are recognized when the carrying amount of an asset or liability in the Consolidated statement of financial position differs from its tax base, except for differences arising on the initial recognition of goodwill.

 

Net deferred tax liabilities are comprised of the following amounts:

 

   As of
June 30,
2023		   As of
June 30,
2022		 
Deferred tax asset        
Tax loss carry-forward   292,267    
-
 
Total other receivables  $292,267    
-
 
           
Deferred tax liability          
Customer relationship   1,346,374    
-
 
Other tax liabilities   17,700      
Total deferred tax liability  $1,364,074    
-
 
 Net deferred tax liability  $1,071,807    
-
 

 

The following table shows the expiration date of the recognized accumulated tax loss carryforwards pursuant to statutes of limitations:

 

Fiscal year  Tax-loss
carry
forward		   Deferred
tax asset		   Expiration
date		   Tax
jurisdiction
2022   10,980    3,843    2027   Argentina
2023   824,069    288,424    2028   Argentina
Total   835,049    292,267         

 

Unrecognized deferred tax assets

 

As of June 30, 2023 and 2022 deferred tax assets relating to the operating company in the UK, Luxembourg, Argentina (Moolec Science S.E.) and United States of America aren’t recognized because it is not probable that future taxable amounts will be available to utilize those temporary differences and losses. Therefore, in the present Consolidated Financial Statements, the Company decided not to recognize deferred income tax assets generated by the tax loss carry forward for the periods ended on June 30, 2023 and 2022 for the amounts of $1,631,947 and $ 860,112 respectively.

 

Deferred tax assets have not been recognized in respect of the following items, because it is not probable that future taxable profit will be available against which the Group can use the benefits therefrom:

 

   2023   2022   2021   2020 
Tax losses per country  Gross amount   Tax effect   Gross amount   Tax effect   Gross amount   Tax effect   Gross amount   Tax effect 
United Kingdom   3,641,516    691,888    4,526,905    860,112    1,986,814    377,495    320,524    60,900 
Luxembourg   3,267,560    620,837    -    -    -    -    -    - 
Argentina   1,484,790    282,110    -    -    -    -    -    - 
United States of America   195,328    37,112    -    -    -    -    -    - 
Total   8,589,194    1,631,947    4,526,905    860,112    1,986,814    377,495    320,524    60,900