Yinson Annual Report 2018

5. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED) (e) Fair value of investment properties The Group carries its investment properties at fair value, with changes in fair value determined using market approach based on the comparison valuation method recognised in the income statement. The key assumptions and basis used to determine the fair value are as disclosed in Note 17. (f) Income taxes Judgement is involved in determining the Group’s provision for income taxes as there are certain transactions and computations for which the ultimate tax determination is uncertain during the ordinary course of business. The Group recognises liabilities for expected tax issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recognised, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. (g) Uncertain tax position arising from a change in tax administration for a foreign operation There was a change in the tax administration for a foreign operation of a subsidiary whereby with effect from the Year of Assessment 2015, non-resident companies are required to file its income tax returns on an actual profits basis, changing from the previous basis which was on deemed profits. The effective date for this change of tax law which was the Year of Assessment 2015 for the foreign operation was for the financial year ended 31 January 2014. In the financial year ended 31 January 2018, the foreign operation subsidiary re-filed its income tax returns for the Years of Assessment 2006 to 2015 from the deemed profits basis to the actual profits basis. Given that the change in tax administration is only recent, there may be potential varying interpretations between the foreign operation subsidiary and the tax authority on the application of the change, which would result in the ultimate tax determination for these tax submissions to be uncertain. As at 31 January 2018, the tax submissions totalling RM23,847,000 (2017: RM16,642,000) was accounted by the foreign operation subsidiary as an income tax liability. The Group has also recognised an asset of RM13,506,000 (2017: RM9,461,000) as at 31 January 2018 representing accrued reimbursable income recoverable as the resultant tax impact will be compensated under the contractual terms with the customer. 6. REVENUE Group Company 2018 2017 2018 2017 RM’000 RM’000 RM’000 RM’000 Vessel chartering and support services fees 908,856 542,735 – – Management fee income 1,050 250 74,892 27,012 Advance interest income 50 89 – – Rental income 200 181 – – Dividend from subsidiaries and a joint venture – – 45,824 103,754 910,156 543,255 120,716 130,766 Notes to the Financial Statements (Cont’d) For the financial year ended 31 January 2018 132 Yinson Holdings Berhad Annual Report 2018 Accountability