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5. Income Tax Expense continued Consolidated 2015 000 2014 000 The balance comprises temporary differences attributable to Licences and brands 3253 14934 Employee benefits 6197 5963 Provisions 4085 4866 Interest rate swaps 519 2684 Other 4788 6817 Net balance disclosed as deferred tax assets 12336 5396 For the year ended 30 June 2015 the Company had 1.8 million of income tax expense 2014 2.5 million expense recognised directly in equity in relation to cash flow hedges with a corresponding deferred tax liability 2014 liability being recognised. There are no unused tax losses for which no deferred tax asset has been recognised. On the acquisition of Austereo Group Ltd a Deferred Tax Liability DTL was recognised in respect of the difference between the higher accounting book value and lower tax cost base of the licences and brands. As a result of the 2015 impairment the DTL has been reduced by 11.7 million. Recognition and Measurement Income Tax Income tax amounts recognised in the Groups financial statements relate to tax paying entities within the Group and have been recognised in accordance with Group policy. The income tax expense or revenue for the year is the tax payable on the current years taxable income based on the applicable tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements and adjusted by changes to unused tax losses. Deferred Taxes Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when the assets are recovered or liabilities are settled based on those tax rates which are enacted or substantively enacted for each jurisdiction. The relevant tax rates are applied to the cumulative amounts of deductible and taxable temporary differences to measure the deferred tax asset or liability. Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. In determining the extent of temporary differences of assets the carrying amount of assets is generally assumed to be recovered through use except for non-amortising identifiable intangible assets such as free to air commercial television and radio broadcasting licences brands and tradenames where the carrying amounts are assumed to be recovered through sale unless there is evidence of recovery through use. Tax Dispute The Company was subject to a specific issue tax audit by the ATO in relation to the income years ended 30 June 2006 to 30 June 2009. The ATO disagreed with the tax deductibility of payments on certain redeemable preference shares issued by the Company. In 2014 the Company reached a settlement with the ATO for a cash payment of 14.0 million with no Shortfall Interest Charges or penalties to be applied to the new assessments. As such 10.9 million in interest and 15.5 million in income tax expense was reversed in 2014. Tax Consolidated Group The Company is the head entity of the tax consolidated group. For further information refer Note 19. 47 SOUTHERN CROSS AUSTEREO ANNUAL REPORT 2015