ENRICHING LIVES EXPANDING HORIZONS - Maxis

MAXIS BERHAD
ANNUAL REPORT 2011
147
12 TAX EXPENSES (CONTINUED)
During the financial year, one of the subsidiaries of the Group has been granted Investment Allowance under the Last
Mile Broadband Tax Incentive by the Ministry of Finance. This has resulted in the recognition of tax credits amounting
to RM352,347,000, comprising RM223,317,000 in respect of prior financial years and RM129,030,000 for the current
financial year.
The gazetted Finance Act 2007 introduced a single-tier company income tax system with effect from year of assessment 2008.
Under the single-tier system, companies are not required to have tax credits under Section 108 of the Income Tax Act 1967 for
dividend payment purposes. Dividends paid under this system are tax-exempt in the hands of the shareholder. The Section 108
tax credit as at 31 December 2007 will be available to the companies until such time that the credit is fully utilised or upon expiry
of the six-year transitional period on 31 December 2013, whichever is earlier, unless the company opts to disregard the Section
108 credits to pay single-tier dividends under the special transitional provisions of the Finance Act 2007.
Subject to agreement by the tax authorities, a subsidiary of the Group has sufficient Section 108 tax credits to frank approximately
RM7,239,000 (2010: RM7,239,000) of its retained earnings if paid out as dividends.
13 EARNINGS PER SHARE
(a) Basic earnings per share
Basic earnings per share of the Group is calculated by dividing the profit attributable to ordinary equity holders of the
Company for the financial year by the weighted average number of ordinary shares in issue during the financial year.
GROUP
2011 2010
Profit attributable to the equity holders of the Company (RM’000) 2,526,872 2,295,414
Weighted average number of issued ordinary shares (’000) 7,500,000 7,500,000
Basic earnings per share (sen) 33.69 30.61
(b) Diluted earnings per share
For the current financial year ended 31 December 2011, the diluted earnings per share is the same as basic earnings per
share as the effect of dilutive potential ordinary shares is anti-dilutive. As at 31 December 2011, 11,306,300 share options
were granted and remained unexercised pursuant to the ESOS that could potentially dilute the basic earnings per share in
the future but is anti-dilutive in the current financial year ended 31 December 2011. For the previous financial year ended 31
December 2010, the diluted earnings per share was not applicable as there were no dilutive potential ordinary shares.