UOB Annual Report 2002 - United Overseas Bank

14 Tax
(a) The tax charge to the income statements comprises the following:
The Group
The Bank
2002 2001 2002 2001
$'000 $'000 $'000 $'000
On the profit of the financial year:
Current tax 317,872 251,651 279,825 190,653
Tax on exceptional item [Note 32(c)] – – 148,477 –
Deferred tax (8,135) 2,042 (5,404) 52
309,737 253,693 422,898 190,705
Share of tax of associates 25,479 25,725 – –
335,216 279,418 422,898 190,705
Under/(over)provision of tax in respect of
prior financial years:
Current tax 4,680 (10,430) (5,209) (9,309)
Deferred tax (170) – (422) –
339,726 268,988 417,267 181,396
The tax charge on the results of the Group and the Bank for the financial year differs from the theoretical amount that would
arise by applying the Singapore statutory income tax rate to profit before tax due to the following:
The Group
The Bank
2002 2001 2002 2001
$'000 $'000 $'000 $'000
Profit before tax 1,433,570 1,197,562 1,849,293 928,035
Tax calculated at a tax rate of 22% (2001: 24.5%) 315,385 293,403 406,844 227,369
Singapore statutory stepped income exemption (360) (338) (12) (13)
Offshore income from the Asian Currency Unit and
other income taxed at concessionary rates (39,851) (34,509) (36,269) (28,107)
One-off corporate tax rebate of 5% on Singapore
income tax payable for year of assessment 2002 – (8,191) – (6,734)
Other tax rebates (1,144) (604) (662) (240)
Effect of different tax rates in other countries 31,868 23,238 13,277 17,192
Losses of subsidiaries and associates not offset
against taxable income of other entities 18,287 25,866 – –
Income not subject to tax (50,860) (21,959) (62,589) (20,006)
Expenses not deductible for tax purposes 62,217 3,761 102,309 1,343
Realisation of deferred tax benefit in respect of
tax losses not previously recognised (326) (1,249) – (99)
Tax expense on profit of the financial year 335,216 279,418 422,898 190,705
In 2002, the Singapore Government enacted a change in the income tax rate from 24.5% to 22%.
UNITED OVERSEAS BANK 111