90
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
6
INCOME TAX IN THE CONSOLIDATED STATEMENT OF PROFIT OR LOSS
(a)
Taxation in the consolidated statement of profit or loss represents:
(b)
2015
2014
HK$'000
HK$'000
Current tax - Hong Kong Profits Tax
Provision for the year
31,890
161,500
(Over)/under-provision in respect of prior years
(81)
11,735
31,809
173,235
Deferred tax
Origination and reversal of temporary differences
6,747
19,503
38,556
192,738
The provision for Hong Kong Profits Tax for 2015 is calculated at 16.5% (2014: 16.5%) of the estimated assessable profits for the year, taking into account a reduction granted by the Government of Hong Kong Special Administrative Region of 75% of the tax payable for the year of assessment 2014-15 subject to a maximum reduction of HK$20,000 for each business (2014: a maximum reduction of HK$10,000 was granted for the year of assessment 2013-14 and was taken into account in calculating the provision for 2014).
Reconciliation between tax expense and accounting profit at an applicable tax rate:
2015
HK$'000
2014
HK$'000
Profit before taxation
231,471
1,224,149
Notional tax on profit before taxation, calculated at 16.5%
38,192
201,985
Tax effect of non-deductible expenses
10,215
4,337
Tax effect of non-taxable income
(11,534)
(32,556)
Tax effect of current year's tax losses not recognised
1,938
2,141
Tax effect of prior years' unrecognised tax losses utilised this year
(88)
(218)
Tax effect of temporary differences on investment properties
and other property, plant and equipment (Over)/under-provision in respect of prior years
(86)
5,314
(81)
11,735
Actual tax expense
38,556
192,738
Hong Kong Ferry (Holdings) Company Limited Annual Report 2015