年報 - HKExnews

NOTES TO THE FINANCIAL STATEMENTS
31 March 2010
28. DEFERRED TAX
Withholding tax on the
distributable profits of the
Group’s PRC subsidiaries
Depreciation allowance
in excess of related
depreciation
Revaluation of properties
Fair values of derivative
financial instruments Others Group
2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009
HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000
At beginning of year 21,579 – (721) (721) 2,753 1,886 – 11,000 2,619 4,449 26,230 16,614
Deferred tax charged/
(credited) to the
income statement
during the year (note 9) 9 24,393 21,579 – – 4,497 867 – (11,000) 1,338 (1,830) 30,228 9,616
At end of year 45,972 21,579 (721) (721) 7,250 2,753 – – 3,957 2,619 56,458 26,230
The Group has tax losses arising in Hong Kong of
HK$670,203,000 (2009: HK$607,704,000) that are
available indefinitely for offsetting against future taxable
profits of the companies in which the losses arose.
Deferred tax assets have not been recognised in respect
of these losses as they have arisen in subsidiaries of
which no assessable profits are expected to generate in
the foreseeable future.
Pursuant to the New Corporate Income Tax Law, a
10% withholding tax is levied on dividends declared to
foreign investors from the foreign investment enterprises
established in Mainland China. The requirement is
effective from 1 January 2008 and applies to earnings
generated after 31 December 2007. A lower withholding
tax rate may be applied if there is a tax treaty between
China and jurisdiction of the foreign investors. For the
Group, the applicable rate is 10%. The Group is therefore
liable to withholding taxes on dividends distributed by
those subsidiaries established in Mainland China in
respect of earnings generated from 1 January 2008.
There are no income tax consequences attaching to the
payment of dividends by the Company to its shareholders.
At 31 March 2010, the Company has no significant
unrecognised deferred tax asset/liability (2009: Nil).
28.
670,203,000
607,704,000
10%
10%
TEXWINCA HOLDINGS LIMITED ANNUAL REPORT 2010
101