Malaysia legislation
Section 10
of Mengikut peraturan Bilangan 34 Peraturan-Peraturan Tanah Tahun 1966, adalah
Seksyen 10
Interest income from deposits 413,316 464,645 22,721 52,528
The Group
The Company 2005 2004 2005 2004
Estimated tax payable/paid:
Current year Under 6,259,075 6,598,312 8,304,618 6,384,331
(Over) provision in prior years 57,745
(59,723)
48,602
(57,028)
6,316,820 6,538,589 8,353,220 6,327,303
Deferred tax (Note 17)
(4,526,436)
189,700
(4,506,436)
—
Share of income tax expense of associated companies 3,042,170 3,196,670
—
—
4,832,554 9,924,959 3,846,784 6,327,303
22hb Jun 2006]
1663
A numerical reconciliation of income tax expense at the applicable income tax rate to income tax expense at the effective income tax rate is as follows:
The Group
The Company 2005 2004 2005 2004
Profit before tax 16,400,528 36,226,325 13,682,093 22,367,653
Tax at the applicable tax rate of 28% (also 28% in 2004)
4,592,148 10,143,371 3,830,986 6,262,943
Tax effects of:
Expenses that are not deductible in determining taxable profit 2,084,912 831,771 1,508,335 865,360
Income that are not assessable in determining taxable profit
(398,052)
(969,160)
(139,641)
(743,972)
Under(over)provision in prior years 57,745
(59,723)
48,602
(57,028)
Underprovision of income tax in current year
(169,224)
—
(169,224)
—
Temporary differences not recognised previously *
(10,701)
(62,300)
—
—
Temporary differences not recognised **
(92,000)
41,000
—
—
Discount on CULS capitalised
(1,232,274)
—
(1,232,274)
—
Tax expense for the year 4,832,554 9,924,959 3,846,784 6,327,303
*
The temporary differences were not recognised previously in the financial statements as the effect on the financial statements was not material.
** No deferred tax assets has been recognised (all pertaining to a subsidiary company) in respect of unutilised tax losses of RM514,000 (RM422,000
in 2004) due to the unpredictability of future profit streams. The unutilised tax losses, subject to agreement by tax authorities, are available to offset against future taxable profits.
As of 31 December 2005 the Company has tax-exempt income amounting to
RM3,356,812 (also RM3,356,812 in 2004) arising from the tax payable on chargeable income waived in 1999 in accordance with the Income Tax
(Amendment) Act, 1999. This tax exempt income account, which is subject to approval by the tax authorities, are available for the distributions of tax exempt dividends to the shareholders of the Company.
1664
[22hb Jun 2006