View - Singapore Technologies Engineering

37. TAXATION38. EXTRAORDINARY ITEMSTHE GROUPThe tax charge in respect of the profit of the Groupfor the financial year is higher than that determined byapplying the statutory tax rate to the profit beforetaxation due primarily to certain expenses not deductiblefor taxation purposes, income of foreign subsidiariesbeing taxed at higher rates and deferred taxbenefits not recognised.As at 31 December 2000, unutilised tax losses,unutilised investment allowances and unabsorbed wearand tear allowances of subsidiaries amounted toapproximately $101,737,000 (1999: $39,064,000)which are available for set-off against future taxableprofits subject to agreement with the Income TaxAuthorities and compliance with certain provisions ofGROUPCOMPANY2000 1999 2000 1999$’000 $’000 $’000 $’000Income tax on the profit for the year:Current tax 116,770 88,298 53,348 68,386Deferred tax (1,698) (511) – –Associated companies 8,160 5,076 – –Joint ventures 190 – – –123,422 92,863 53,348 68,386Under (over) provision in respect of prior year:Current tax (431) 1,153 – –Deferred tax (1,978) (129) – –121,013 93,887 53,348 68,386the tax legislation of the respective countries in whichthe subsidiaries operate.The potential tax benefit of approximately$142,199,000 (1999: $89,121,000) arising from suchunutilised tax losses, unabsorbed wear and tearallowances and other timing differences has not beenrecognised in the financial statements in accordance withthe Group’s accounting policy.THE COMPANYThe tax charge in respect of the profit of the Companyfor the financial year is lower than that determined byapplying the statutory tax rate to the profit beforetaxation due primarily to tax exempt dividends receivedfrom subsidiaries.39. DIVIDENDSGROUP2000 1999$’000 $’000Write-back of provision for potential loss on disposal of a subsidiary – 3,500Gain on voluntary liquidation of an associated company – 123Loss on redemption of preference shares of a subsidiary – (480)Provision for:Diminution in value of unquoted investments – (5,127)Loans receivable – (15,342)Expected losses from a subsidiary’s operation in China – (634)Doubtful debts on advances to an associated company written back – 288Gain on disposal of:Joint ventures – 1,378Associated companies – 8,089– (8,205)GROUPCOMPANY2000 1999 2000 1999$’000 $’000 $’000 $’000Additional final dividend paid in respect of the previousyear due to issue of shares under ST Engg ShareOption Scheme before books closure date 1,439 381 1,439 381Proposed final dividend of 2.5 cents (1999: 2.3 cents)per share less tax at 25.5% 53,188 48,315 53,188 48,315Proposed special dividend of 5.5 cents (1999: 7 cents)per share less tax at 25.5% 117,013 147,044 117,013 147,044Proposed special tax exempt dividend of 1.5 cents(1999: Nil cents) per share 42,836 – 42,836 –214,476 195,740 214,476 195,74040. EARNINGS PER SHAREBASIC EARNINGS PER SHAREThe calculations for basic earnings per share before extraordinary items and basic earnings per share after extraordinaryitems are based on:GROUP2000 1999$’000 $’000Consolidated profit after taxation and minority interests but before extraordinary items 288,138 200,529Consolidated profit after taxation, minority interests and extraordinary items 288,138 192,324168 • visionnotes to the financial statements • 169