GHL System Berhad Annual Report 2020

97 a n n u a l r e p o r t 2 0 2 0 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 CONT’D 9. TAXATION (cont‘d) Group Company 2020 2019 2020 2019 RM RM RM RM Deferred tax (Note 18): Relating to origination and reversal of temporary differences 341,146 (1,130,891) (18,739) (13,033) Under/(Over)-provision in prior years 203,802 353,498 (62,302) 103,311 544,948 (777,393) (81,041) 90,278 Current tax expense based on profit for the financial year from continuing operation 12,198,551 12,690,977 (94,939) (211,055) Current tax expense based on profit for the financial year from discontinuing operation 1 7 - - Tax expense for the financial year 12,198,552 12,690,984 (94,939) (211,055) (a) The Malaysian income tax is calculated at the statutory tax rate of 24% (2019: 24%) of the estimated taxable profits for the fiscal year. (b) Taxation for other taxation authorities are calculated at the rates prevailing in those respective jurisdictions. (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 2020 2019 2020 2019 RM RM RM RM Profit before tax from continuing operation 21,319,771 43,555,184 5,037,487 18,397,591 Loss before tax from discontinued operation (2,103,799) (3,845,597) - - 19,215,972 39,709,587 5,037,487 18,397,591 Tax at Malaysian statutory tax rate of 24% (2019: 24%) 4,611,833 9,530,301 1,208,997 4,415,422 Tax effects in respect of: Non-allowable expenses 10,781,527 3,063,084 3,172,538 2,461,080 Non-taxable income (4,186,573) (4,072,398) (5,039,160) (7,841,422) Higher tax rates in foreign jurisdiction 408,561 368,044 - - Utilisation of previously unrecognised deferred tax assets (800,983) - - - Deferred tax assets not recognised 1,079,449 2,471,034 638,886 965,785 11,893,814 11,360,065 (18,739) 865 Under/(Over)-provision of income tax expense in prior years 100,936 977,421 (13,898) (315,231) Under/(Over)-provision of deferred tax in prior years 203,802 353,498 (62,302) 103,311 Tax expense for the financial year 12,198,552 12,690,984 (94,939) (211,055)