12. INCOME TAX (BENEFIT)/EXPENSE (CONT’D.) The reconciliation between tax (benefit)/expense and the product of accounting (loss)/profit multiplied by the applicable corporate tax rate are as follows: 2021 2020 RM’000 RM’000 Group (Loss)/profit before tax (35,982) 238,404 Taxation at Malaysian statutory tax rate of 24% (2020: 24%) (8,636) 57,217 Tax incentive and income not subject to tax (4,937) (450) Expenses not deductible for tax purposes 10,006 53,597 Effect on income taxed under real property gain tax 465 (17,923) Deferred tax recognised at different tax rate (5,079) – Deferred tax assets not recognised 2,398 1,988 Utilisation of previously unrecognised tax losses and unabsorbed capital allowances (33) (3,170) Share of results of joint ventures (5,341) 280 Share of results of an associate (4,461) (1,451) Under/(over)provision of deferred tax in prior year 6,237 (1,423) Underprovision of tax expense in prior years 3,974 3,182 Overprovision of real property gain tax in prior years (502) – Income tax (benefit)/expense (5,909) 91,847 Company Loss before tax (41,369) (28,755) Taxation at Malaysian statutory tax rate of 24% (2020: 24%) (9,929) (6,901) Income not subject to tax (5,449) (8,910) Expenses not deductible for tax purposes 15,993 16,700 Under/(over)provision of deferred tax in prior year 5 (349) (Over)/underprovision of tax expense in prior years (23) 2 Income tax expense 597 542 12. INCOME TAX (BENEFIT)/EXPENSE (CONT’D.) Tax savings during the financial year arising from: Group 2021 2020 RM’000 RM’000 Utilisation of previously unused tax losses and unabsorbed capital allowances 138 13,208 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 2021 2020 RM’000 RM’000 Unabsorbed capital allowances 8 10 Unused tax losses 21,996 12,138 22,004 12,148 Tax losses for which the tax effects have not been recognised in the financial statements: Group 2021 2020 RM’000 RM’000 - Expiring within 10 years 21,996 12,138 The Malaysia Finance Act gazetted on 27 December 2018 has imposed a time limitation to restrict the carry forward of the unutilised tax losses for Malaysia entities. Based on the latest Malaysian Finance Act gazetted on 31 December 2021, the time limit for the carry forward of the unutilised tax losses has been extended from 7 years to 10 years. 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. FINANCIAL STATEMENTS NOTES TO THE For the financial year ended 31 December 2021 Annual Report 2021 TROPICANA CORPORATION BERHAD FINANCIAL STATEMENTS AND OTHER INFORMATION 260 261
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