80
FRONTKEN CORPORATION BERHAD
(651020-T)
ANNUAL REPORT 2014
NOTES TO THE
FINANCIAL STATEMENTS
(cont’d)
8.
INCOME TAX EXPENSE (CONT’D)
A reconciliation of income tax expense at the applicable statutory income tax rate to income tax expense at
the effective income tax rate is as follows:
The Group
The Company
2014
2013
2014
2013
RM
RM
RM
RM
Profit before tax
28,139,842
5,910,807
1,609,481
154,034
Tax at the applicable tax rate
of 25% (2013 : 25%)
7,034,961
1,477,702
402,370
38,509
Effect of different tax rates
of other tax jurisdictions
(1,564,212)
(1,244,547)
–
–
Tax effects of:
Non-deductible expenses
1,281,652
1,716,149
521,320
364,853
Income not subject to tax
(483,479)
(188,672)
(923,690)
(403,362)
Utilisation of deferred tax
assets previously not
recognised
(692,523)
(517,564)
–
–
Utilisation of unabsorbed
reinvestment allowances
(806,000)
–
–
–
Tax incentives
(133,922)
(117,247)
–
–
Income tax exemption
(183,707)
(97,838)
–
–
Deferred tax assets not
recognised during the year
863,919
709,928
–
–
Under/(Over)provision in
prior years
- Current tax
242,305
501,932
–
–
- Deferred tax
(600,939)
2,881,107
–
–
Effect of share of results in
associates
(6,333)
325,178
–
–
Income tax expense
4,951,722
5,446,128
–
–
The statutory tax rate will be reduced to 24% from the current financial year’s rate of 25%, effective year of
assessment 2016.
