Annual report 2009-OK.qxp - Canadia Bank Plc.

Canadia Bank Plc.26. PROVISION FOR LOAN LOSSES - NET2009 2009 2008 2008US$ Million Riel US$ Million Rielequivalentequivalent(Note 2.1) (Note 2.1)Provision for loan losses (Note 7a) 8,453,281 35,242 13,593,843 55,476Recovery of loan losses (Note 7a) (6,029,780) (25,138) (4,425,460) (18,060)2,423,501 10,104 9,168,383 37,41627. INCOME TAX EXPENSEThe Bank's tax returns are subject to periodic examination by the Tax Department. As the application of tax lawsand regulations to many types of transactions is susceptible to varying interpretations, amounts reported in thefinancial statements could be changed at a later date, upon final determination by the Tax Departmenta) Current income tax expense2009 2009 2008 2008US$ Million Riel US$ Million Rielequivalentequivalent(Note 2.1) (Note 2.1)Current income tax expense 4,172,434 17,395 5,518,412 22,521Reconciliation between accounting and taxable profit is as follows:55Annual Report 20092009 2009 2008 2008US$ Million Riel US$ Million Rielequivalentequivalent(Note 2.1) (Note 2.1)Accounting profit before income tax 24,523,500 102,239 27,592,062 112,603Non-taxable income (4,148,212) (17,294) - -Non-deductible expenses 486,885 2,030 - -Taxable profit subject to 20% tax rate 20,862,173 86,975 27,592,062 112,603Current income tax expense 4,172,434 17,395 5,518,412 22,521In accordance with Cambodian tax laws, the Bank has an obligation to pay corporate income tax of either tax onprofit at the rate of 20% on taxable profit or minimum tax at 1% of turnover, whichever is higher.b) Deferred taxNo deferred tax has been recognised in the financial statements as there are no material temporary differences.