2017E — Page 114

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

7

INCOME TAX IN THE CONSOLIDATED STATEMENT OF PROFIT OR LOSS (Continued)

(b)

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

2017

2016

HK$'000

HK$'000

Profit before taxation

385,953

296,503

Notional tax on profit before taxation, calculated at 16.5%

63,682

48,923

Tax effect of non-deductible expenses

3,364

21,119

Tax effect of non-taxable income

(27,099)

(31,268)

Tax effect of current year's tax losses not recognised

1,184

2,568

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

(1,887)

Tax effect of temporary differences on investment properties

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

Actual tax expense

112

Hong Kong Ferry (Holdings) Company Limited Annual Report 2017

593

(1,091)

(176)

11,691

39,661

51,942