TUNG LOK RESTAURANTS (2000) LTD / Annual Report
2016
64
Notes to the financial statements
For the financial year ended 31 March 2016
8.
Income tax benefit (cont’d)
(c)
Unrecognised tax losses and other temporary differences
As at the end of the reporting period, the Group has the following unused tax losses and temporary differences
which are available for offsetting against future taxable income as follows:
Group
2016
2015
$
$
(a)
Tax losses carry forward
At the beginning of the financial year
8,559,411 11,846,188
Adjustment to prior year
(594,068)
(1,425,238)
Amount in current year
(2,450,903)
3,055,576
De-consolidation of subsidiary
– (4,917,115)
At the end of the financial year
5,514,440 8,559,411
Deferred tax benefit not recorded
937,455 1,455,100
(b)
Other temporary differences
At the beginning of the financial year
2,636,991 4,276,059
Adjustment to prior year
537,307
928,710
Amount in current year
(233,049)
(2,567,778)
At the end of the financial year
2,941,249 2,636,991
Deferred tax benefit not recorded
500,012
448,288
The above tax losses carry forward and other temporary differences are subject to agreement with the tax
authorities in Singapore and in the jurisdiction in which the Group operates. In addition, the Singapore tax losses
carry forward and other temporary differences are subject to the retention of majority shareholders as defined
and have no expiry date. The amounts of unutilised tax losses with expiry dates are set out below:
Group
2016
2015
$
Expiry date
$
Expiry date
Unrecognised tax losses
226,852 31 Mar 2018
159,864 31 Mar 2016
1,278,852 31 Mar 2019
226,852 31 Mar 2018
719,569 31 Mar 2020 1,278,852 31 Mar 2019
403,365 31 Mar 2021
719,569 31 Mar 2020
The above deferred tax benefits have not been recognised in the financial statements due to the unpredictability
of future profit streams.
