GHL System Berhad Annual Report 2017

GHL SYSTEMS BERHAD 82 NOTES TO THE FINANCIAL STATEMENTS 31 December 2017 CONT’D 8. TAX EXPENSE (cont’d) (c) The numerical reconciliation between the tax expense and the product of accounting profit multiplied by the applicable tax rates of the Group and of the Company are as follows: Group Company 2017 2016 2017 2016 RM RM RM RM Profit before tax 25,409,775 24,762,562 497,558 4,127,739 Tax at Malaysian statutory tax rate of 24% (2016: 24%) 6,098,346 5,943,015 119,414 990,657 Tax effects in respect of: Non-allowable expenses 4,103,203 2,222,967 2,392,892 1,587,868 Non-taxable income (5,442,672) (1,615,596) (1,769,060) (2,131,738) Deferred tax assets not recognised 1,591,156 770,237 - - Different tax rate in foreign jurisdictions - 54,758 - - Utilisation of previously unrecognised deferred tax assets (1,724,280) (1,616,520) - (157,463) 4,625,753 5,758,861 743,246 289,324 Under/(Over) provision of income tax expense in prior years 200,831 846,061 (144,701) 10,708 Under provision of deferred tax in prior years 78,573 - 78,573 - Tax expense for the financial year 4,905,157 6,604,922 677,118 300,032 (d) Tax savings of the Group and of the Company are as follows: Group Company 2017 2016 2017 2016 RM RM RM RM Arising from utilisation of previously unrecognised deferred tax assets 1,724,280 1,616,520 - 157,463 (e) Tax on each component of other comprehensive (loss)/income is as follows: Group 2017 2016 Before tax Tax effect After tax Before tax Tax effect After tax RM RM RM RM RM RM Foreign currency translations (3,478,849) - (3,478,849) 1,678,276 - 1,678,276