directors - The Lion Group

21. DEFERRED TAX ASSETS/LIABILITIES
Deferred Tax Assets
73
The Group The Company
2005 2004 2005 2004
RM’000 RM’000 RM’000 RM’000
At beginning of year 33,457 33,185 – –
Transfer from/(to) income statement (Note 11) (38) 272 – –
At end of year 33,419 33,457 – –
The above deferred tax assets represent the tax effects on the unabsorbed capital allowances and unutilised tax
losses of certain subsidiary companies.
As of 30 June 2005, the Group has unrecognised deferred tax assets totalling RM720 million (2004: RM710
million) in respect of the unutilised tax losses and unabsorbed capital allowances of certain subsidiary companies.
This amount has not been recognised in the financial statements in view of the uncertainty of their recoverability.
The unabsorbed capital allowances and unutilised tax losses claimed are subject to the agreement with the tax
authorities.
Deferred Tax Liabilities
The Group The Company
2005 2004 2005 2004
RM’000 RM’000 RM’000 RM’000
At beginning of year 107,443 47,863 3,036 3,036
Transfer from income statement (Note 11) 34,632 62,714 – –
Revaluation reserve (Note 14) – (3,134) – –
At end of year 142,075 107,443 3,036 3,036
The deferred tax liabilities represent the tax effects of the following:
The Group The Company
2005 2004 2005 2004
RM’000 RM’000 RM’000 RM’000
Temporary differences arising from:
Group’s acquisition cost over tax base
cost of certain development properties 2,882 2,882 – –
Property, plant and equipment 139,297 111,336 3,036 3,036
Others (104) (364) – –
Unabsorbed capital allowances and
unutilised tax losses – (6,411) – –
142,075 107,443 3,036 3,036