NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
INCOME TAX IN THE CONSOLIDATED STATEMENT OF PROFIT OR LOSS (Continued)
Reconciliation between tax expense and accounting profit at an applicable tax rate:
(b)
Profit before taxation
2016
2015
(restated)
HK$'000
HK$'000
296,503
240,978
Notional tax on profit before taxation, calculated at 16.5%
48,923
39,761
Tax effect of non-deductible expenses
21,119
10,215
Tax effect of non-taxable income
(31,268)
(11,534)
Tax effect of current year's tax losses not recognised
2,568
361
Tax effect of prior years' unrecognised tax losses utilised this year
(88)
Tax effect of temporary differences on investment properties
and other property, plant and equipment
Under/(over)-provision in respect of prior years
(1,091)
(78)
11,691
(81)
Actual tax expense
51,942
38,556
Hong Kong Ferry (Holdings) Company Limited
Annual Report 2016
99