Wah Seong Corporation Berhad Annual Report 2018

35 FINANCE COSTS Group Company 2018 2017 2018 2017 RM’000 RM’000 RM’000 RM’000 Interest expense on: - loans and borrowings 38,940 41,897 6,489 7,427 36 TAX EXPENSE Group Company 2018 2017 2018 2017 RM’000 RM’000 RM’000 RM’000 Current tax: - Malaysian income tax 8,665 10,173 1,210 1,988 - Foreign taxation 39,485 22,722 - - 48,150 32,895 1,210 1,988 Deferred taxation (Note 14) (924) (24,933) (361) 113 47,226 7,962 849 2,101 Current tax: - Current financial year 48,290 36,959 1,100 1,800 - (Over)/Under accrual in prior financial years (140) (4,064) 110 188 48,150 32,895 1,210 1,988 Deferred taxation (Note 14) - Origination and reversal of temporary differences (924) (24,933) (361) 113 Tax expense recognised in profit or loss 47,226 7,962 849 2,101 The numerical reconciliation between the tax expense and the product of accounting profit multiplied by the statutory tax rate is as follows: Group Company 2018 2017 2018 2017 RM’000 RM’000 RM’000 RM’000 Profit before tax 107,088 122,605 537 23,017 Calculated at the Malaysian tax rate of 24% (2017: 24%) on profit before tax 25,701 29,425 129 5,524 Expenses not deductible for tax purposes 27,554 28,779 654 3,199 Income not subject to tax (22,464) (38,328) (44) (6,810) Utilisation of previously unrecognised tax losses and unabsorbed capital allowances (1,334) (3,508) - - Reversal of previously recognised deferred tax assets 3,532 - - - Current financial year deferred tax assets not recognised 4,262 10,363 - - Utilisation of tax incentives (1,268) (1,971) - - Effect of different tax rates in other countries 6,195 1,060 - - Effect of changes in tax rates - (12,539) - - (Over)/Underprovision in prior financial years (140) (4,064) 110 188 Share of associates and joint ventures results 4,603 (1,093) - - Others 585 (162) - - Tax expense recognised in profit or loss 47,226 7,962 849 2,101 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 ANNUAL REPORT 2018 159