Events 2005 - ChartNexus

146
Notes to the Financial Statements 31 December 2005
26. TAX EXPENSE (Continued)
Group Company
2005 2004 2005 2004
RM’000 RM’000 RM’000 RM’000
Over provision in prior years
Income tax (34) (86) – –
Deferred tax (Note 23) (458) – (393) –
(492) (86) (393) –
36,245 24,954 43,122 22,520
Share of tax in associated company – 2 – –
36,245 24,956 43,122 22,520
The numerical reconciliation between the average effective tax rate and the applicable tax rate are as follows:
2005 2004
Group RM’000 % RM’000 %
Profit before taxation 191,713 166,208
Taxation at Malaysian statutory rate of 28% (2004: 28%) 53,680 28.00 46,538 28.00
Depreciation of non-qualifying property, plant and equipment 1,289 0.67 1,153 0.69
Expenses not deductible for tax purposes
Utilisation of unabsorbed reinvestment
1,987 1.04 3,659 2.20
allowance brought forward – – (28,615) (17.22)
Utilisation of previously unrecognised deferred tax assets (2,527) (1.32) – –
Income not subject to tax (456) (0.24) – –
Deferred tax assets not recognised
Over provision of deferred tax liability in prior year
1 – 2,773 1.67
not adjusted for – – (204) (0.13)
Tax incentives (17,283) (9.01) (24) (0.01)
Difference in tax rates in foreign jurisdiction
Reduction in statutory tax rate on chargeable
86 0.04 (198) (0.12)
income up to RM500,000 for certain subsidiary company (40) (0.02) (40) (0.02)
36,737 19.16 25,042 15.06
Over provision in prior years (492) (0.26) (86) (0.05)
Tax expenses/Average effective tax rate 36,245 18.90 24,956 15.01