Utusan Melayu (Malaysia) Bhd - Announcements

Notes T O T HE A CCOUNTS for the year ended 31 December 1999
5. TAXATION
The Group The Company
1999 1998 1999 1998
RM RM RM RM
Taxation based on the result for the year:-
Malaysian income tax — 1,744,526 372,112 375,000
Transfer from deferred taxation (101,000) (25,000) — —
(101,000) 1,719,526 372,112 375,000
Under/(over) provision in prior years:-
Income tax (83,553) (140,220) — —
Deferred taxation — 83,000 — —
(83,553) (57,220) — —
(184,553) 1,662,306 372,112 375,000
Share of associated companies’ taxation (131,173) 659,440 — —
(315,726) 2,321,746 372,112 375,000
(a) The taxation charge for the Company for the financial year is in respect of dividend income.
(b) No provision has been made for Malaysian income tax in respect of business income earned by the Company for the
financial year ended 31 December 1999 pursuant to Section 8 of the Income Tax (Amendment) Act 1999.
(c) The Company has sufficient tax credit under Section 108 of the Income Tax Act, 1967 to frank the payment of dividends
out of all its distributable reserves as at 31 December 1999.
(d) Pursuant to the requirements to subsection 365(1A) of the Companies Act, 1965, the future distribution of dividends
out of the Company’s unappropriated profit may only be declared for a financial year up to an amount not exceeding
the after-tax profit of that financial year or not exceeding the average dividends declared in respect of the two financial
year immediately preceding that financial year, whichever is greater.
44 Utusan Melayu (Malaysia) Berhad