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Notes to the financial statements
31 December 2014
Bursa Malaysia
•
Annual Report 2014
122
9. Income tax expense
Group
Company
2014
2013
2014
2013
RM’000
RM’000
RM’000
RM’000
Income tax:
Current year provision
74,844
68,602
327
1,810
Under/(over) provision of tax in prior years
70
(7,434)
72
(2,132)
74,914
61,168
399
(322)
Deferred tax (Note 18):
Relating to origination and reversal of temporary differences
(5,258)
(2,288)
(2,741)
(1,504)
Relating to reduction in Malaysian income tax rate
(918)
-
(820)
-
(Over)/under provision of tax in prior years
(1,001)
7,315
(1,001)
7,192
(7,177)
5,027
(4,562)
5,688
Total income tax expense
67,737
66,195
(4,163)
5,366
The reconciliation between tax expense and the product of accounting profit multiplied by the applicable corporate tax rate for the years ended 31 December
2014 and 31 December 2013 is as follows:
Group
Company
2014
2013
2014
2013
RM’000
RM’000
RM’000
RM’000
Accounting profit before tax
271,759
245,580
170,473
126,369
Taxation at Malaysian statutory tax rate of 25%
67,940
61,395
42,618
31,592
Deferred tax not recognised in respect of current year’s tax losses
1
89
-
-
Effect of tax rate of 3% on profit before tax for
subsidiary incorporated in Labuan
(55)
(35)
-
-
Effect of expenses not deductible for tax purposes
5,670
5,981
4,949
5,181
Effect of reduction in Malaysian income tax rate
(918)
-
(820)
-
Effect of income not subject to tax
(1,637)
(911)
(49,981)
(36,262)
Recognition of previously unrecognised deferred tax assets
(1,586)
-
-
-
Utilisation of previously unrecognised tax losses by a subsidiary
(747)
-
-
-
Utilisation of subsidiaries losses under group relief
-
(205)
-
(205)
Under/(over) provision of income tax in prior years
70
(7,434)
72
(2,132)
(Over)/under provision of deferred tax in prior years
(1,001)
7,315
(1,001)
7,192
Tax expense for the year
67,737
66,195
(4,163)
5,366
In the previous financial year, the Group and the Company’s tax charge was reduced by RM205,000 as unutilised tax losses of certain subsidiaries were offset
against its taxable income. No payments were made by the Company to its subsidiaries for the surrendering of these tax losses.
The Malaysian statutory tax rate will be reduced to 24% from the current year’s rate of 25%, effective year of assessment 2016.