28. Income tax expense (cont’d)
Group
2015 2014
$’000 $’000
Relationship between tax expense and accounting profit
Profit before tax
8,611 26,139
Income tax using Singapore statutory tax rate of 17%
1,464
4,444
Adjustments:
Expenses not deductible for tax purposes
1,339
1,970
Income not subject to tax
(456)
(27)
Partial tax exemption
(113)
(184)
Tax exempt income
(2,533)
(1,425)
Effect of different tax rates in foreign countries
376
420
Deferred tax assets not recognised
2,795
1,687
Utilisation of deferred tax asset previously not recognised
(2,575)
(222)
Tax incentives/concessions under foreign jurisdiction
–
(420)
Share of results of joint ventures and associates
(660)
(656)
Under/(over) provision in respect of prior years
1,487
(264)
Others
26
53
1,150
5,376
The Company and certain Singapore incorporated subsidiaries are granted the “Approved
International Shipping Enterprise” incentive by the Maritime Port Authority, under which
income from qualifying shipping operations is exempt from tax for a period of 10 years
commencing 1 January 2004 under the Singapore Income Tax Act. On 1 January 2014, the
extension of the scheme for another 10 years was approved by Maritime Port of Authority,
subject to a review of performance at the end of 2018.
Unabsorbed tax losses
At the end of the reporting period, the Group has tax losses of approximately $ 20,293,000
(2014: $26,534,000) that are available for offset against future taxable profits of the relevant
subsidiary in which the losses arose, for which no deferred tax asset is recognised due to
the uncertainty of its recoverability. The use of these tax losses is subject to the agreement
of the tax authority and compliance with certain provisions of the tax legislation of the
respective country in which the subsidiary operates.
NOTES TO THE FINANCIAL
STATEMENTS
For the financial year ended 30 June 2015
ASL Marine Holdings Ltd. /Annual Report 2015
141
