2015 — Page 92

90

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

6

INCOME TAX IN THE CONSOLIDATED STATEMENT OF PROFIT OR LOSS

(a)

Taxation in the consolidated statement of profit or loss represents:

(b)

2015

2014

HK$'000

HK$'000

Current tax - Hong Kong Profits Tax

Provision for the year

31,890

161,500

(Over)/under-provision in respect of prior years

(81)

11,735

31,809

173,235

Deferred tax

Origination and reversal of temporary differences

6,747

19,503

38,556

192,738

The provision for Hong Kong Profits Tax for 2015 is calculated at 16.5% (2014: 16.5%) of the estimated assessable profits for the year, taking into account a reduction granted by the Government of Hong Kong Special Administrative Region of 75% of the tax payable for the year of assessment 2014-15 subject to a maximum reduction of HK$20,000 for each business (2014: a maximum reduction of HK$10,000 was granted for the year of assessment 2013-14 and was taken into account in calculating the provision for 2014).

Reconciliation between tax expense and accounting profit at an applicable tax rate:

2015

HK$'000

2014

HK$'000

Profit before taxation

231,471

1,224,149

Notional tax on profit before taxation, calculated at 16.5%

38,192

201,985

Tax effect of non-deductible expenses

10,215

4,337

Tax effect of non-taxable income

(11,534)

(32,556)

Tax effect of current year's tax losses not recognised

1,938

2,141

Tax effect of prior years' unrecognised tax losses utilised this year

(88)

(218)

Tax effect of temporary differences on investment properties

and other property, plant and equipment (Over)/under-provision in respect of prior years

(86)

5,314

(81)

11,735

Actual tax expense

38,556

192,738

Hong Kong Ferry (Holdings) Company Limited Annual Report 2015