Tropicana Corporation Berhad Annual Report 2019

12. INCOME TAX EXPENSE (CONT’D.) Tax savings during the financial year arising from: Group 2019 2018 RM’000 RM’000 Utilisation of previously unused tax losses and unabsorbed capital allowances 55,871 5,433 The following are deferred tax assets which have not been recognised by the Group as they have arisen in companies that have a recent history of losses or in companies where future taxable pro t may be insuf cient to trigger the utilisation of these items. Group 2019 2018 RM’000 RM’000 Unabsorbed capital allowances 52,759 266 Unused tax losses 18,362 34,711 Other deductible temporary differences 39,538 68,751 110,659 103,728 In accordance with the provision in Finance Act 2018, the unused tax losses are available for utilisation in the next seven years, for which, any excess at the end of the seventh year, will be disregarded. Deferred tax assets have not been recognised in respect of unabsorbed capital allowances and unused tax losses because it is probable that the future taxable profit of certain loss-making subsidiaries would not be available against which the tax losses and unabsorbed capital allowances can be utilised. pg 165 Tropicana Corporation Berhad Annual Report 2019 Sustainability at Tropicana What We’ve Governed Financial Statements & Other Information