SAILING THE SEAS OF SUCCESS - Swissco Holdings Limited

NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2004
8. Tax
(a)
Tax expense
The Group
2004 2003
$ $
Tax expense attributable to profit is made up of:
Current income tax 100,000 166,843
Deferred tax – 103,780
Share of tax of associated companies 61,609 34,484
161,609 305,107
Over provision in preceding financial year
- Current income tax – (24,430)
161,609 280,677
The tax expense on profit differs from the amount that would arise using the Singapore standard rate of income
tax due to the following:
The Group
2004 2003
$ $
Profit before tax 4,034,209 4,371,285
Tax calculated at a tax rate of 20% (2003: 22%) 806,842 961,683
Singapore statutory stepped income exemption (21,000) (23,100)
Income not subject to tax (833,659) (802,107)
Expenses not deductible for tax purposes 209,426 161,675
Others – 6,956
161,609 305,107
(b)
Movements in current tax liabilities
The Group
2004 2003
$ $
At the beginning of financial year 203,593 97,004
Income tax paid (2,750) (35,824)
Current financial year’s income tax expense 100,000 166,843
Over provision for preceding financial year – (24,430)
At the end of financial year 300,843 203,593
ANNUAL REPORT 2004_37