Notes to the Consolidated Financial Statements - Seylan Bank

296 North Bound > Seylan Bank Annual Report 2011
Notes to the Consolidated Financial Statements
(i) Income tax on profits has been computed at the rate of 28% on the taxable income arising from Banking
activities.
(ii) The Group companies have computed taxation based on the applicable rates for such companies.
13.2 Reconciliation of Accounting Profit and Taxable Income
BANK
GROUP
2011 2010 2011 2010
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
Profit Before Tax 1,572,407 1,997,634 1,560,047 1,954,498
Less: Profit from Leasing Business 6,141 152,265 6,141 152,265
Profit on Banking Activities 1,566,266 1,845,369 1,553,906 1,802,233
Add: Disallowable Expenses 2,496,623 3,146,040 2,675,744 3,258,421
Less: Allowable Expenses 1,631,276 2,157,564 1,850,876 2,255,687
Exempt/Allowable Income 285,897 580,393 285,897 580,537
Add: Tax Losses from Subsidiary – – 52,839 84,513
Business Income 2,145,716 2,253,452 2,145,716 2,308,943
Income from Other Sources – – 8,528 33
Statutory Income 2,145,716 2,253,452 2,154,244 2,308,976
Less: Tax Loss Set-Off – – 2,985 11
Assessable Income 2,145,716 2,253,452 2,151,259 2,308,965
Taxable Income from Banking Activities 2,145,716 2,253,452 2,151,259 2,308,965
Taxable Income from Leasing Business – 203,270 – 203,270
Total Taxable Income 2,145,716 2,456,722 2,151,259 2,512,235
Taxable
Income
BANK
GROUP
2011 2010 2011 2010
Tax Taxable Tax Taxable Tax Taxable
Expense Income Expense Income Expense Income
Tax
Expense
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
Bank - Domestic Banking Unit and
On-Shore Profits 2,139,716 599,120 2,435,855 852,549 2,145,259 600,673 2,491,368 871,979
Off-Shore Profits 6,000 1,680 20,867 4,173 6,000 1,680 20,867 4,173
Social Responsibility Levy (SRL) – – – 12,851 – – – 13,142
2,145,716 600,800 2,456,722 869,573 2,151,259 602,353 2,512,235 889,294
Up to 2010 Domestic Banking Operations and On-Shore Profits of FCBU was taxed at the rate of 35% and
Off-Shore Profits of FCBU was taxed at the rate of 20%. From 2011 onwards all Banking Operations are taxed
at the rate of 28% and Social Responsibility Levy was abolished.
13.3 Tax Losses Brought Forward
BANK
GROUP
2011 2010 2011 2010
Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000
Tax Losses Brought Forward – – 777,827 693,325
Tax Losses Incurred during the Year 522,903* – 575,742 84,513
Tax Losses Utilized during the Year – – 2,985 11
Tax Losses Carried Forward 522,903 – 1,350,584 777,827
* Tax losses of the Bank pertaining to Leasing Business