Baker Technology LimitedAnnual Report 2014
111
9.
Income tax expense (cont’d)
(b)
Relationshipbetween tax expense and accountingprofit
A reconciliation between tax expense and the product of accounting profit multiplied by the
applicable corporate tax rate for the years ended 31December are as follows:-
Group
2014
2013
$
$
Accountingprofit before tax
16,325,885
26,080,025
Income taxexpenseat theapplicable tax rateof 17% (2013: 17%)
2,775,401
4,433,604
Adjustments for tax effect of:
Unrecogniseddeferred tax assets
33,055
–
Incomenot subject to taxation
(143,194)
(1,507,142)
Tax incentive
(115,250)
–
Non-deductibleexpenses
381,110
378,474
Underprovision in respect of prior years
15,775
471,194
Tax exemption
(77,775)
(75,578)
Others, net
(60,347)
6,642
Income tax expense recognised inprofit or loss
2,808,775
3,707,194
Thegainondisposal of an associate is capital innature andnot taxable.
A loss-transfer systemof group relief (the“GroupRelief System”) for companieswas introduced in
Singaporewith effect from year of assessment 2003. Under theGroup Relief System, a company
belonging to a group of entities may transfer its current year’s unabsorbed capital allowances,
unabsorbed trade losses and unabsorbed donations (loss items) to another company belonging
to the samegroup, tobededucted against the latter’s assessable income.
NOTES TO THE
FINANCIAL STATEMENTS
For the financial year ended 31December 2014
