Nextmedia ar cover 21june op.co

91
10. INCOME TAX EXPENSE
2007 2006
HK$’000 HK$’000
Current tax:
Hong Kong 75,145 81,933
Taiwan 3,047 –
Other jurisdictions 217 318
Under (over) provision in prior years 3,077 (2,983)
81,486 79,268
Deferred tax (note 33):
Current year (10,323) (4,752)
Hong Kong Profi ts Tax is calculated at 17.5% of the estimated assessable profi ts for both years.
Taiwan Profi ts Tax is calculated at 22% of the estimated assessable profi ts for the current year.
Taxation arising in other jurisdictions is calculated at the rates prevailing in the relevant jurisdictions.
The tax charge for the year can be reconciled to the profi t before tax as follows:
71,163 74,516
2007 2006
HK$’000 HK$’000
Profi t before tax 413,576 515,282
Tax at Hong Kong Profi ts Tax rate of 17.5% 72,376 90,174
Tax effect of expenses not deductible for tax purpose 2,849 6,598
Tax effect of income not taxable for tax purpose (3,409) (3,551)
Under (over) provision in prior years 3,077 (2,983)
Tax effect of tax losses not recognised 14,478 3,227
Tax effect of deferred tax assets not recognised 199 742
Utilisation of tax losses previously not recognised (10,844) (18,663)
Utilisation of deferred tax assets previously not recognised (5,676) (80)
Effect of different tax rates of subsidiaries operating in other jurisdictions (1,887) (948)
Tax charge for the year 71,163 74,516