1994 — Page 55

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

53

Page 55Page 56