TUNG LOK RESTAURANTS (2000) LTD / Annual Report
2016
63
Notes to the financial statements
For the financial year ended 31 March 2016
8.
Income tax benefit
(a)
Major components of income tax benefit
The major components of income tax benefit for the years ended 31 March 2016 and 2015 are:
Group
2016
2015
$
$
Current tax benefit
(346,045)
(387,355)
Deferred tax credit:
- Utilisation of previously unrecognised deferred tax assets
(570,728)
(708,195)
- Origination and reversal of temporary differences
234,681
639,068
(336,047)
(69,127)
Income tax benefit recognised in profit or loss
(682,092)
(456,482)
(b)
Relationship between tax benefit and accounting profit/(loss)
The reconciliation between tax benefit and the product of accounting profit/(loss) multiplied by the applicable
corporate tax rate for the years ended 31 March 2016 and 2015 is as follows:
Group
2016
2015
$
$
Profit/(loss) before tax
299,606 (1,009,249)
Income tax expense/(benefit) calculated at 17% (2015: 17%)
50,933
(171,572)
Adjustments:
Tax effect on the share of results of a joint venture and associates which is
shown after tax
(48,684)
(122,980)
Non-deductible expenses
530,885
414,544
Utilisation of deferred tax assets previously not recognised
(570,728)
(708,195)
Effect of unused tax losses and other temporary differences not recognised as
deferred tax assets
114,456
791,122
Effect of different tax rate of subsidiary operating in other jurisdiction
(50,269)
(178,042)
Tax exempted income
(54,236)
(33,410)
Effect under Productivity and Innovation Credit Scheme
(629,456)
(440,700)
Corporate income tax rebate
(24,993)
(7,249)
Income tax benefit recognised in profit or loss
(682,092)
(456,482)
Domestic income tax benefit is calculated at 17% (2015: 17%) of the estimated assessable profit/(loss) for the
year. Taxation for other jurisdiction is calculated at the rate prevailing in the relevant jurisdiction.
The Company and its subsidiaries in Singapore enjoy deduction/allowances at 400% of eligible expenses up
to a limit of its expenditure per year under the enhanced Productivity and Innovation Credit (“PIC”) Scheme as
announced in Budget 2014 and 2013.
