Notes on the Accounts
7. TAXATION
a. Taxation in the profit and loss account represents :
Provision for Hong Kong profits tax at 16.5% (1993 - 17.5%) on the profits of the year Underprovision in respect of prior year
b. Taxation in the balance sheet represents :
1994
HK$'000
1993
HK$'000
83,620
876
62,348
220
84,496
62,568
1994
HK$'000
1993
HK$'000
Provision for Hong Kong profits tax
for the year
83,620
62,348
Provisional profits tax paid
(44,708)
(45,165)
38,912
17,183
C.
No provision for deferred taxation has been made as the Directors consider that no liability would be likely to 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:
1994
1993
HK$'000
HK$'000
Depreciation allowances in excess
of related depreciation General provisions
266,803
232,624
(111,180)
(74,936)
155,623
157,688
The Kowloon Motor Bus Company (1933) Limited
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