(Jamaica) Limited - FirstCaribbean International Bank

notes to the Financial Statements
Year Ended 31 October 2009
(Expressed in Jamaican dollars unless otherwise indicated)
27. Income tax expense
(a) The taxation charge is based on the profit for the year adjusted for taxation purposes and comprises:
The Group
The Bank
2009 2008 2009 2008
$’000 $’000 $’000 $’000
Current year income tax 412,330 452,776 364,286 411,975
Adjustment to prior year provision (2,928) (533) (2,707) (536)
409,402 452,243 361,579 411,439
Deferred tax (note 11) 11,227 (40,819) 8,673 (35,674)
420,629 411,424 370,252 375,765
Income tax is calculated at the rate of 33 1/3% for the Bank and at 30% for FirstCaribbean International Building
Society.
(b) Tax on the Group’s income before tax differs from the theoretical amount that would arise using the statutory tax rate
for the Bank as follows:
The Group
The Bank
2009 2008 2009 2008
$’000 $’000 $’000 $’000
Income before taxation 1,307,287 1,246,477 1,139,916 1,128,078
Tax calculated at 33 1/3% 435,762 415,492 379,972 376,026
Effect of :
Different tax rate applicable to mortgage
financing subsidiary (5,675) (3,946) - -
Prior year under provision (2,928) (533) (2,707) (536)
Income not subject to tax (6,366) (1,976) (6,366) (1,976)
Expenses not deductible for tax purposes 400 3,313 14 3,313
Other charges and allowances (564) (926) (661) (1,062)
420,629 411,424 370,252 375,765
28. net Income For The Year
2009 2008
$’000 $’000
The net income for the year is dealt with as follows in the financial statements of:
The Bank 769,664 752,313
Subsidiary 116,994 82,740
886,658 835,053
29. Earnings Per Stock Unit
Earnings per ordinary stock unit are calculated by dividing the net income for the year by the weighted average number
of ordinary stock units in issue:
2009 2008
Net income for the year ($’000) 886,658 835,053
Weighted average number of ordinary stock units in issue (‘000) 265,757 265,757
Earnings per stock unit ($) 3.33 3.14
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