NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
6 INCOME TAX IN THE CONSOLIDATED STATEMENT OF PROFIT OR LOSS (Continued)
(b) Reconciliation between tax expense and accounting profit at an applicable
tax rate:
Profit before taxation
2018
2017
(restated)
HK$'000
HK$'000
397,757
343,527
Notional tax on profit before taxation, calculated at the rates applicable
profit in tax jurisdictions concerned
65,465
56,682
Tax effect of non-deductible expenses
1,664
3,364
Tax effect of non-taxable income
(13,731)
(27,099)
Tax effect of current year's tax losses not recognised
1,051
1,184
Tax effect of prior years' unrecognised tax losses utilised this year
(1,187)
(1,887)
Tax effect of temporary differences on investment properties and
other property, plant and equipment Over-provision in respect of prior years
38
334
(186)
(176)
Actual tax expense
53,114
32,402
Hong Kong Ferry (Holdings) Company Limited Annual Report 2018