NOTES TO THE FINANCIAL STATEMENTS — NOTE 26

26. Taxation
 
   June 2017 
R000 
   June 2016 
R000 
  
Major components of the taxation expense             
Current taxation         – current year  2 714     7 891    
                                      – prior year        (520)   
Deferred taxation       – current year  2 538     43 636    
                                      – prior year  (912)    (77)   
Taxation for the year  4 340     50 930    
Reconciliation of taxation charge             
Net income before taxation at 28%  770 357     789 065    
REIT dividend  (455 872)    (422 919)   
Income exempt from tax and non-tax deductible expenses  (322 158)    (327 005)   
Prior year tax adjustment             
   Income taxation        3 657    
   Deferred taxation  (912)    6 099    
Deferred taxation asset not recognised  26 587     40 848    
Adjustment in respect of foreign tax rates  (13 662)    (38 563)   
Security transfer tax        (252)   
Taxation expense recognised in statements of profit or loss and other comprehensive income  4 340     50 930    
The taxation rate applied in the reconciliation is 28%.             
Income exempt from tax and non-tax deductible expenses comprise the following:             
Change in fair value:             
   Investment property  (344 327)    (353 398)   
   Derivative instruments  1 421     14 891    
   Financial guarantee  45 879          
   Convertible loan  (998)    3 865    
Straight-line rental income accrual  (9 551)    (24 381)   
Profit on disposal of assets  477          
Write-off of goodwill  5 078          
Reversal of wear and tear allowances on asset sales  (14 297)         
Other  (5 840)    32 018    
Total income exempt from tax and non-tax deductible expenses  (322 158)    (327 00    

NOTES TO THE FINANCIAL STATEMENTS — NOTE 26