NOTES TO THE FINANCIAL STATEMENTS
For the Financial Year Ended 31 December 2014
12 INCOME TAX EXPENSE (CONT’D)
(b)
Relationship between tax expense and accounting profit/(loss)
The reconciliation between tax expense and the product of accounting profit/(loss) multiplied by the applicable
statutory tax rate for the years ended 31 December 2014 and 2013 are as follows:
Group
2014
2013
(restated)
$’000
$’000
Profit before tax from continuing operations
33,082
108,466
Loss before tax from discontinued operations (note 24)
(7,704)
(15,169)
Less: Share of results of equity-accounted associates and joint ventures *
(14,866)
16,835
10,512
110,132
Tax at statutory rate of 17% (2013: 17%)
1,787
18,722
Effect of different tax rates in other countries
633
85
Under/(Over) provision in respect of prior years
351
(14,309)
Under/(Over) provision of deferred tax in respect of prior years
36
(37,360)
Expenses/Losses not claimable
14,409
30,334
Income not subject to tax
(7,545)
(26,825)
Effect of partial tax exemption
(354)
(328)
Deferred tax asset not recognised
–
1,060
Utilisation of previously unrecognised tax losses and unutilised capital
allowances
(194)
(3,068)
Others
61
(1,618)
9,184
(33,307)
* These are presented net of tax in profit or loss.
Taxation for other jurisdictions are calculated at the rates prevailing in the respective jurisdictions. During the current
financial year, the income tax rate applicable to foreign subsidiaries are as follows:
2014
2013
Malaysia
25%
25%
Indonesia
25%
25% and 30%
Australia
30%
30%
89
THE STRAITS TRADING COMPANY LIMITED ANNUAL REPORT 2014
