Mandarin Oriental International Limited - Mandarin Oriental Hotel ...

6 Tax
2008 2007
US$m US$m
Company and subsidiaries
– Current tax 6.7 13.3
– Deferred tax (refer note 13) 11.6 9.5
18.3 22.8
Analysis by geographical area
– Hong Kong and Macau 9.3 8.8
– Other Asia 3.9 4.6
– Europe 9.4 6.3
– The Americas (4.3 ) 3.1
18.3 22.8
Analysis by activity
– Hotel ownership 15.1 17.4
– Hotel management 3.2 5.4
18.3 22.8
Reconciliation between tax expense and tax at the applicable tax rate:
Tax at applicable tax rate 8.7 18.0
Expenses/(income) not deductible/(taxable) for tax purposes 1.1 (0.7 )
Tax losses not recognized 6.6 4.8
Temporary differences not recognized (0.4 ) 0.4
Utilization of previously unrecognized tax losses (0.5 ) (0.2 )
Utilization of previously unrecognized temporary differences (0.3 ) (2.4 )
Recognition of previously unrecognized deferred tax assets (0.4 ) (2.1 )
Recognition of previously unrecognized temporary differences 3.6 1.8
Deferred tax assets written off 0.9 0.3
Withholding tax 1.7 2.0
Change in tax rates (0.1 ) –
(Over)/under provision in prior years (2.7 ) 1.5
Other 0.1 (0.6 )
18.3 22.8
The applicable tax rate for the year was 13% (2007: 17%) and represents the weighted average of the rates of taxation
prevailing in the territories in which the Group operates.
Share of tax of associates and joint venture of US$3.6 million (2007: US$5.8 million) are included in share of results
of associates and joint venture (refer note 4).
Annual Report 2008 49