REPUBLIC BANK LIMITED
88
Notes to theConsolidatedFinancial Statements
For the year ended September 30, 2014. Expressed in thousands of Trinidad and Tobago dollars ($’000), except where otherwise stated
19 Taxation expense
2014
2013
Corporation tax
354,375
384,344
Deferred tax
(15,395)
(7,269)
338,980
377,075
Reconciliation between taxation expense and accounting profit
Income taxes in the consolidated statement of income vary from amounts that would be computed by applying the statutory tax rate for the
following reasons:
2014
2013
Accounting profit
1,568,696
1,554,942
Tax at applicable statutory tax rates
418,594
407,063
Tax effect of items that are adjustable in determining taxable profit:
Tax exempt income
(82,136)
(61,809)
Non-deductible expenses
27,529
57,840
Allowable deductions
(15,395)
(22,435)
Provision for Green Fund Levy and other taxes
(9,612)
(3,584)
338,980
377,075
The Group has tax losses in two of its subsidiaries amounting to $158.4 million (2013: $274.6 million). In one of these subsidiaries, no deferred
tax asset has been recognised for these tax losses in the financial statements since it is not anticipated that there will be sufficient future taxable
profits to offset these losses.
20 Related parties
Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in
making financial or operating decisions. A number of banking transactions are entered into with related parties in the normal course of business.
These transactions are both secured and unsecured and were carried out on commercial terms and conditions and at market rates.
