NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2024 32 PROFIT FOR THE YEAR (CONT’D) Group 2024 2023 $’000 $’000 The above finance income and finance costs (including amounts capitalised) include the following interest income and expenses in respect of assets and liabilities not at FVTPL: – total interest income on financial assets 95,240 81,699 – total finance costs on financial liabilities 517,425 417,640 During the year, net finance costs of the Group have been capitalised at rates ranging from 1.00% to 8.00% (2023: 0.35% to 8.00%) per annum, 5.09% to 5.10% (2023: 4.59% to 5.09%) per annum, and 1.00% to 8.00% (2023: 1.00% to 8.00%) per annum for development properties, property, plant and equipment, and investment properties, respectively. 33 TAX EXPENSE Group Note 2024 2023 $’000 $’000 Current tax expense Current year – Corporate income tax – Global minimum top-up tax 97,576 749 130,497 – Over provision in respect of prior years (5,810) (67,015) 92,515 63,482 Deferred tax expense Movements in temporary differences 33,462 36,169 Effect of changes in tax rates and legislation 22,198 – Over provision in respect of prior years (13,545) (11,076) 29 42,115 25,093 Land appreciation tax 17,885 10,190 Withholding tax 9,546 24,997 Total tax expense 162,061 123,762 Effects of changes in tax rates and legislation for 2024 was largely attributable to a change in New Zealand tax legislation which removed the ability to claim tax depreciation on commercial buildings, that came into effect in current year. The Group has provided a one-off deferred tax liability adjustment of approximately $20.8 million (NZ$25.8 million) in relation to its hotels and other property portfolio located in New Zealand. FINANCIALS CITY DEVELOPMENTS LIMITED 160
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