Powering growth - Aztech Group Ltd - Investor Relations

84a z t e c h a n n u a l r e p o r t 2 0 0 9F i n a n c i a l S t a t e m e n t s16 DEFERRED TAX (cont’d)Certain deferred tax assets and liabilities have been offset in accordance with the Group and the Company’s accounting policy. The following isthe analysis of the deferred tax balances for statement of financial position purposes:GROUPCOMPANY2009 2008 2009 2008$’000 $’000 $’000 $’000Deferred tax liabilities 1,474 216 - -Deferred tax assets (191) (1,381) (16) (572)Subject to the agreement by the tax authorities in the relevant foreign tax jurisdictions in which the Group operates and conditions imposed bylaw, the Group has tax losses carryforwards available for offsetting against future taxable income as detailed below. In addition, the Singaporetax loss carryforwards are subject to the retention of majority shareholders as defined.GROUP2009 2008$’000 $’000As at January 1 34,952 38,371Adjustment for prior years (419) (2,343)Adjustment for tax loss expiry (3,243) -Arising in current year 10,890 89Exchange difference (31) 106Group relief (10,354) -Amount utilised (4,200) (1,271)As at December 31 27,595 34,952Deferred tax benefit on above not recorded 5,605 3,811No deferred tax asset has been recognised by the Group in respect of the tax losses amounting to $27,595,000 as at December 31, 2009 (2008: $34,952,000) due to the unpredictability of future profits stream of the relevant subsidiaries.The Group tax loss carryforwards amounting to $8,373,000 (2008 : $14,234,000) are available for an unlimited future period. The remainingtax loss carryforwards amounting to S$19,222,000 (2008 : $20,718,000) have a limited life ranging from 1 to 15 years to offset against futureprofits after which any unutilised amount will be foregone.