Annual report 2008-OK-B-up.qxp - Canadia Bank Plc.

NOTES TO THE FINANCIAL STATEMENTS
26. PROVISION FOR BAD LOANS - NET
2008 2007 2008 2007
US$ US$ Riel Million Riel Million
(Unaudited) (Unaudited)
Provision for loan losses (note 7a ) (13,593,843) (16,772,419) (55,476) (67,140)
Recovery of loan losses (note 7a ) 4,425,460 15,631,743 18,060 62,574
27. INCOME TAX EXPENSE
(9,168,383) (1,140,676) (37,416) (4,566)
2008 2007 2008 2007
US$ US$ Riel Million Riel Million
(Unaudited) (Unaudited)
Current income tax expense 5,518,412 5,028,697 22,521 20,130
a) Reconciliation between income tax expense and accounting profit:
2008 2007 2008 2007
US$ US$ Riel Million Riel Million
(Unaudited) (Unaudited
Accounting profit before income tax 27,592,062 25,143,485 112,603 100,649
Non-deductible expenses for tax purposes - - - -
Taxable income 27,592,062 25,143,485 112,603 100,649
Income tax calculated at the rate of 20% 5,518,412 5,028,697 22,521 20,130
In accordance with Cambodian tax laws, the Bank has an obligation to pay Corporate Income Tax of either
Tax on Profit at the rate of 20% on taxable profit or Minimum Tax at 1% of turnover, whichever is higher.
b) Deferred tax
No deferred tax has been recognised in the financial statements as there are no material temporary
differences.
c) Other tax matters
The Bank's tax returns are subject to periodic examination by the Tax Department. As the application of tax
laws and regulations to many types of transactions are susceptible to varying interpretations, amounts
reported in the financial statements could be changed at a later date, upon final determination by the Tax
Department.
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Annual Report 2008