NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
7
INCOME TAX IN THE CONSOLIDATED STATEMENT OF PROFIT OR LOSS (Continued)
(b)
Reconciliation between tax expense and accounting profit at an applicable tax rate:
2017
2016
HK$'000
HK$'000
Profit before taxation
385,953
296,503
Notional tax on profit before taxation, calculated at 16.5%
63,682
48,923
Tax effect of non-deductible expenses
3,364
21,119
Tax effect of non-taxable income
(27,099)
(31,268)
Tax effect of current year's tax losses not recognised
1,184
2,568
Tax effect of prior years' unrecognised tax losses utilised this year
(1,887)
Tax effect of temporary differences on investment properties
and other property, plant and equipment (Over)/under-provision in respect of prior years
Actual tax expense
112
Hong Kong Ferry (Holdings) Company Limited Annual Report 2017
593
(1,091)
(176)
11,691
39,661
51,942