directors - The Lion Group

11. INCOME TAX (EXPENSE)/CREDIT
Income tax (expense)/credit for the Group and the Company consists of:
59
The Group The Company
2005 2004 2005 2004
RM’000 RM’000 RM’000 RM’000
Current estimated tax payable:
Current year:
Malaysian (20,015) (25,599) (2,448) (3,275)
Foreign (41) (6,291) – –
Over/(Under)provision in prior years 6,843 (5) 6,496 328
Deferred taxation:
Current year:
Malaysian (Note 21) (34,670) (62,442) – –
(47,883) (94,337) 4,048 (2,947)
Share in income tax expense of associated
companies (13,152) (4,052) – –
(61,035) (98,389) 4,048 (2,947)
A reconciliation of income tax credit/(expense) applicable to profit before tax at the statutory income tax rate to
income tax credit/(expense) at the effective income tax rate of the Group and of the Company is as follows:
The Group The Company
2005 2004 2005 2004
RM’000 RM’000 RM’000 RM’000
Profit before tax 396,261 573,777 2,070 9,142
Taxation at statutory tax rate of 28% (2004: 28%) (110,954) (160,658) (580) (2,560)
Effect of different tax rates in other countries 606 1,321 – –
Income not subject to tax 67,248 100,248 2,648 6,160
Expenses not deductible for tax purposes (30,953) (37,155) (4,516) (6,875)
Deferred tax asset not recognised (9,896) (2,140) – –
Reversal of deferred tax asset not previously
recognised 16,071 – – –
Over/(Under)provision in prior years 6,843 (5) 6,496 328
Income tax (expense)/credit (61,035) (98,389) 4,048 (2,947)
As of 30 June 2005, the Company has tax exempt income account amounting to approximately RM21,170,000
(2004: RM21,170,000) arising from waiver of tax payable on chargeable income earned in 1999 under the
Income Tax (Amendment) Act, 1999 which, subject to agreement with the tax authorities, is available for distribution
as tax exempt dividends. As of 30 June 2005, the Company has not distributed any of its tax exempt income as tax
exempt dividends.