Wah Seong Corporation Berhad Annual Report 2019

167 ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 34 FINANCE COSTS Group Company 2019 2018 2019 2018 RM’000 RM’000 RM’000 RM’000 Interest expense on: - loans and borrowings 42,900 38,940 9,070 6,489 - lease liabilities 11,752 - - - 54,652 38,940 9,070 6,489 35 TAX (CREDIT)/EXPENSE Group Company 2019 2018 2019 2018 RM’000 RM’000 RM’000 RM’000 Current tax: - Malaysian income tax 12,066 8,665 2,277 1,210 - Foreign taxation (8,735) 39,485 - - 3,331 48,150 2,277 1,210 Deferred taxation (Note 9) (11,336) (924) (32) (361) (8,005) 47,226 2,245 849 Current tax: - Current financial year 39,631 48,290 2,172 1,100 - (Over)/Under accrual in prior financial years (36,300) (140) 105 110 3,331 48,150 2,277 1,210 Deferred taxation (Note 9) - Origination and reversal of temporary differences (11,336) (924) (32) (361) Tax (credit)/expense recognised in profit or loss (8,005) 47,226 2,245 849 The over provision of foreign tax in prior financial year includes reversal of tax provision following a re-estimation of certain tax position based on current information, in the current financial year.