28. TAX EXPENSE/(CREDIT) Group Company 1.7.2022 to 31.12.2023 RM’000 1.7.2021 to 30.6.2022 RM’000 1.7.2022 to 31.12.2023 RM’000 1.7.2021 to 30.6.2022 RM’000 Recognised in profit or loss Current tax expense – Current period/year 89,123 45,379 5,927 4,020 – Under provision in prior year/period 277 1,659 368 1,224 Total current tax expense 89,400 47,038 6,295 5,244 Deferred tax expense (Note 10) – Current period/year 278,396 (141,884) – – – Over provision in prior year/period (20,818) (76) – – Total deferred tax expense/(credit) 257,578 (141,960) – – Total tax expense/(credit) 346,978 (94,922) 6,295 5,244 Reconciliation of tax expense Net (loss)/profit after tax (190,785) 707,274 3,261 6,879 Total tax expense/(credit) 346,978 (94,922) 6,295 5,244 Zakat 1,051 638 – – Net profit excluding tax and Zakat 157,244 612,990 9,556 12,123 Income tax using Malaysian tax rate of 24% (30.6.2022: 24%) 37,739 147,118 2,293 2,910 Income not subject to tax (1,712) (64,658) (5,975) (4,580) Expenses not deductible for tax purposes 51,864 16,070 9,658 5,734 Effect of exchange rate fluctuations 7,962 – – – Effect of unrecognised deferred tax assets 80,674 4,714 – – Utilisation of deferred tax previously not recognised (17) (214,869) (49) (44) Effects of differential in tax rates of subsidiaries 191,009 15,120 – – 367,519 (96,505) 5,927 4,020 Under provision of tax expense in prior year/ period 277 1,659 368 1,224 Over provision of deferred tax expense in prior year/period (20,818) (76) – – Total tax expense/(credit) 346,978 (94,922) 6,295 5,244 The UK government has introduced an Energy Profit Levy (“EPL”), applying to ring fence profits with effect from 26 May 2022. The EPL was set at 25% for profits arising from 26 May 2022 to 31 December 2022 and 35% for profits arising from 1 January 2023 to 31 March 2028. During the current financial period, the Group recognised deferred tax expense amounting to RM143.20 million based on the taxable temporary difference expected to be reversed during the window for which for EPL regime applies up to 31 March 2028. These temporary differences arose from the expected future amortisation of intangible assets and depreciation of oil and gas assets up to 31 March 2028. Financial Statements DAGANG NeXCHANGE BERHAD 268 NOTES TO THE FINANCIAL STATEMENTS
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