Pg 147 - Berjaya Corporation Berhad

Berjaya Land Berhad (201765-A)
82
Annual Report 2005
Notes To The Financial Statements
30 April 2005
31 TAXATION (CONT’D)
A reconciliation of income tax expense applicable to profit/(loss) before taxation at the statutory income tax rate to income tax expense
at the effective income tax of the Group and of the Company is as follows:
Group 2005 2004
RM’000 RM’000
Profit before taxation 140,577 191,392
Taxation at Malaysian statutory tax rate of 28% (2004 : 28%) 39,362 53,590
Effect of different tax rates in other countries 487 586
Effect of lower tax rates for small and medium scale companies (288) (247)
Effect of income subject to real property gains tax and withholding tax (6,572) (1,182)
Effect of income not subject to tax (25,573) (12,971)
Effect of expenses not deductible for tax purposes 75,053 46,221
Effect of utilisation of previously unrecognised tax losses,
unabsorbed capital allowances and unabsorbed investment tax allowances (4,848) (8,696)
Effect of utilisation of other previously unrecognised deductible temporary differences - (983)
Effect of deferred tax no longer required due to reduction in foreign income tax rate (17,066) -
Deferred tax assets not recognised in respect of current year’s tax losses,
unabsorbed capital allowances and unabsorbed investment tax allowances 8,256 10,979
Deferred tax assets recognised on previously
unrecognised tax losses and unabsorbed capital allowances (257) -
Underprovision of deferred tax in prior years 1,776 246
Underprovision of tax expense in prior years 477 2,018
Tax expense for the year 70,807 89,561
Company 2005 2004
RM’000 RM’000
Profit/(Loss) before taxation 109,560 (14,300)
Taxation at Malaysian statutory tax rate of 28% (2004 : 28%) 30,677 (4,004)
Effect of income not subject to tax - (234)
Effect of expenses not deductible for tax purposes 9,088 55,398
Deferred tax assets not recognised in respect of unabsorbed capital allowances 106 223
Underprovision of tax expense in prior years 1,238 1,669
Tax expense for the year 41,109 53,052
Tax savings during the financial year arising from:
Group Company
2005 2004 2005 2004
RM’000 RM’000 RM’000 RM’000
Utilisation of current year tax losses 3,665 2,600 3,612 2,596
Utilisation of previously unrecognised tax losses 1,600 8,626 - -