Siren Gold Limited Annual Report 2021

4 Income tax 2021 $ 2020 $ a. Income tax benefit Current tax – – Deferred tax – – b. Reconciliation of income tax benefit to prima facie tax payable The prima facie tax benefit on loss from ordinary activities before income tax is reconciled to the income tax expense as follows: Prima facie tax on operating loss at 25% (2020: 27.5%) (329,937) (391,119) Deferred tax asset not brought to account 329,937 391,119 Income tax benefit attributable to operating loss – – c. T he applicable weighted average effective tax rates attributable to the operating result are as follows: The tax rate used in the above reconciliations is the corporate tax rate of 25% (2020: 27.5%) payable by the Australian corporate entity on taxable profits under Australian tax law. d. Balance of franking account at year end of the legal parent Nil Nil e. Tax losses carried forward 3,083,737 1,569,918 Potential deferred tax assets attributable to tax losses have not been brought to account at 31 December 2021 because the directors do not believe it is appropriate to regard the realisation of the deferred tax assets as probable at this point in time. These benefits will only be obtained if: i. the Group derives future assessable income of a nature and of an amount sufficient to enable the benefit from the deductions for the loss to be realised; ii. the Group continues to comply with conditions for deductibility imposed by law; and iii. no changes in tax legislation adversely affect the Group in realising the benefit from the deductions for the loss. Notes to the Consolidated Financial Statements for the year ended 31 December 2021 Siren Gold Limited 40