ANNUAL REPORT 2008 - KNM Steel Sdn Bhd

NOTES TO THE
FINANCIAL STATEMENTS (CONT’D)
21. Tax expense (cont’d)
Group
Company
2008 2007 2008 2007
RM’000 RM’000 RM’000 RM’000
Profit for the year 336,232 186,476 69,594 82,523
Total tax expense 117,489 28,882 1,376 18,639
Profit excluding tax 453,721 215,358 70,970 101,162
Income tax using Malaysian tax rate
of 26% (2007 - 27%) 117,967 58,147 18,452 27,314
Effect of tax rates in foreign jurisdictions* 26,567 (3,962) – –
Effect of change in tax rate ** (1,024) (437) 22 –
Non-deductible expenses 11,088 2,465 328 15
Tax exempt income (21,452) (12,475) (17,420) (8,824)
Tax incentives (12,236) (13,252) – –
Effect of tax losses not recognised 3,062 2,444 – –
Utilisation of previously unrecognised
temporary differences (159) (2,489) (159) –
Others 228 283 – –
124,041 30,724 1,223 18,505
(Over)/Under provision in prior year
- Current tax expense (9,933) (1,842) 153 134
- Deferred tax expense 3,381 – – –
Total tax expense 117,489 28,882 1,376 18,639
* Tax rates in several foreign jurisdictions are different from the tax rates in Malaysia.
** The corporate tax rates are 26% for year of assessment 2008 and 25% for the subsequent years of
assessment. Consequently deferred tax assets and liabilities are measured using these tax rates.
Tax recognised directly in equity
Group
2008 2007
RM’000 RM’000
Reversal of deferred tax liabilities due to changes in tax rate (470) –
KNM GROUP BERHAD
95
ANNUAL REPORT 2008