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