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Financials NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER, 2016 14. Income taxes 14.1 Income tax recognised in profit or loss Group 31-Dec-15 ₦’million (1,042) Company Year ended Year ended Year ended Year ended 31-Dec-16 ₦’million 31-Dec-16 ₦’million Current tax Current tax expense in respect of the current year Deferred tax Deferred tax credit/(expense) recognised in the current year Total income tax recognised in the current year (4,637) (3,673) 31-Dec-15 ₦’million (1,037) 10,332 5,695 (5,929) (6,971) (2,518) (6,191) (6,359) (7,396) Deferred tax assets have been recognised by the Group, since it is probable that future taxable profits will be available for offset. The income tax credit/(expense) for the year can be reconciled to the accounting profit as follows: Group Profit before income tax Income tax expense calculated at 30% (2015: 30%) Education Tax Capital Gains Tax Effect of tax holiday and income that is exempt from taxation Effect of expenses that are not deductible in determining taxable profit Effect of previously unrecognised temporary difference now recognised as deferred tax assets. Effect of deferred tax not recognised on net investment exchange gains Effect of commencement rule Effect of income taxed at different rates Effect of unused tax losses and offsets not recognised as deferred tax assets Effect of different tax rates of subsidiaries operating in other jurisdictions Other Income tax income recognised in profit or loss 31-Dec-15 ₦’million 188,294 (56,488) (1,037) - 54,891 (21) 4,237 (8,908) 21,629 (12,206) 116 259 5,695 - - - (6,951) (17) (1,585) (6,971) Company Year ended Year ended Year ended Year ended 31-Dec-16 ₦’million 180,929 (54,279) (1,212) (2,413) 31-Dec-16 ₦’million 374,396 (112,319) (1,212) (2,413) 52,003 (1,623) 12,329 - 52,003 (872) 5,211 39,523 (8,908) 21,135 - - 1,661 (6,191) 31-Dec-15 ₦’million 220,567 (66,170) (1,037) - 54,811 (21) 4,237 - - - - - 784 (7,396) The income tax rate of 30% was used for the company tax computation as established by the tax legislation of Nigeria effective in 2016 and 2015. Annual Report 2016 179

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