NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the period ended 28 July 2018 A4 INCOME TAX 2018 2017 52 weeks 52 weeks $'000 $'000 (a) Income tax (benefit)/expense (i) Income tax (benefit)/expense Current tax 14,596 23,925 Deferred tax (23,431) (5,651) Income tax (benefit)/expense1 (8,835) 18,274 Deferred income tax expense included in income tax (benefit)/expense comprises: Decrease/(Increase) in deferred tax assets (7,623) 2,359 (Decrease)/Increase in deferred tax liabilities (15,808) (8,010) (23,431) (5,651) (ii) Numerical reconciliation of income tax expense to prima facie tax payable Profit/(loss) before income tax expense (494,837) 30,213 Tax at the Australian tax rate of 30% (2017: 30%) (148,451) 9,064 Tax effect of amounts which are not deductible (taxable) in calculating taxable income: Non-deductible asset impairments 139,593 10,156 Non-deductible losses - 754 Sundry items 27 (278) (8,831) 19,696 Adjustments for current tax of prior periods (4) (1,422) Income tax (benefit)/expense1 (8,835) 18,274 1. Income tax includes an income tax benefit of $22.7 million (2017: $9.6 million) attributable to the restructuring and store exit costs, onerous lease expense and impairment of assets recorded during the period. Refer to note A3 for more information. 2018 2017 $'000 $'000 (b) Deferred tax assets Deferred tax assets comprise temporary differences attributable to: Employee benefits 15,184 15,744 Non-employee provisions and accruals 12,729 18,692 Amortising deductions 1,626 2,543 Property, plant, equipment and software 13,936 - Trading stock 6,894 5,306 Tax losses 738 1,147 Total deferred tax assets 51,107 43,432 Set off of deferred tax assets pursuant to set off provisions (51,107) (43,432) Net deferred tax assets - - Movement Carrying amount at beginning of period 43,432 45,352 Credited/(charged) to income statement 7,623 (2,359) Credited/(charged) to other comprehensive income 52 (31) Business combination - 470 Carrying amount at end of period 51,107 43,432 (c) Deferred tax liabilities Deferred tax liabilities comprise temporary differences attributable to: Property, plant, equipment and software - 421 Brand names 107,330 122,424 Deferred income 4,012 4,524 Sundry items 746 637 112,088 128,006 Set off of deferred tax assets pursuant to set off provisions (51,107) (43,432) Net deferred tax liabilities 60,981 84,574 Movement Carrying amount at beginning of period 128,006 133,796 Charged/(credited) to income statement (15,808) (8,010) Acquisition of brand name - 2,220 Charged/(credited) to other comprehensive income (110) - Carrying amount at end of period 112,088 128,006 56 Myer Annual Report 2018