Osim FR 050407.indd

Notes to the Financial Statements - 31 December 2006 (cont’d)35. Taxation (cont’d)b) Reconciliation between tax expenses and accounting profit 1A reconciliation between the tax expense and the product of accounting profi t multiplied by the applicable tax rate for theyears ended 31 December 2006 and 2005 is as follows:Group2006 2005$’000 $’000Accounting profi t before income tax 43,612 51,416Tax at the domestic rates applicable to profits in the countries where the Group operates 10,621 18,309Adjustments:Permanent differences/expenses not deductible for tax purpose 851 1,522Income not subject to taxation (21) (122)Difference in corporate tax rate and IHQ concessionary tax rate (3,644) (4,277)(Over)/underprovision in respect of previous years (1,453) 229Deferred tax assets not recognised 255 941Utilisation of deferred tax assets previously not recognised (354) –Recognition of deferred tax assets previously not recognised – (327)Share of results of associated companies and a joint venture 1,569 (10,458)Income tax expense recognised in the profi t and loss account 7,824 5,8171The reconciliation is prepared by aggregating separate reconciliations for each national jurisdiction.Notes to the Financial Statements 148Annual Report 2006