NOTES ON THE ACCOUNTS
5 TAXATION
a Taxation in the profit and loss account represents: Provision for Hong Kong profits tax at 17% (1987 18 on the profits of the year Under/(over) provision in respect of prior years
1988
HK$'000
1987 HK$'000
48,100
14,300
25
(822)
48,125
13,478
b Taxation in the balance sheet represents:--
Provision for Hong Kong profits tax for the year Provisional profits tax paid
48,100
14.300
(10,147)
(3.135)
37,953
11,165
Balance of profits tax provision relating to prior years Less: Tax Reserve Certificate purchased under order
6,892
of the Commissioner of Inland Revenue
(6,892)
37,953
11,165
c No provision for deferred taxation has been made as the directors consider that no liability would
likely arise as a result of the reversal of timing differences in the foreseeable future. The full potential liability for deferred taxation calculated on the liability method is as follows:—
Depreciation allowances in excess of
related depreciation
General provisions
42
12
1988 HK$'000
1987 HK$'000
140,229 (39,165)
142,112
(30,672)
101.064
111,440