Annual Report 2015
115
19 TAXATION EXPENSE
2015
2014
Corporation tax
415,222
354,375
Deferred tax
(18,482)
(15,395)
396,740
338,980
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:
2015
2014
Accounting profit
1,633,484
1,568,696
Tax at applicable statutory tax rates
469,525
418,594
Tax effect of items that are adjustable in determining taxable profit:
Tax exempt income
(91,799)
(82,136)
Non-deductible expenses
45,747
27,529
Allowable deductions
(18,481)
(15,395)
Provision for Green Fund Levy and other taxes
(8,252)
(9,612)
396,740
338,980
The Group has tax losses in two of its subsidiaries amounting to $128.9 million (2014: $158.4 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.
