2018E — Page 126

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

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

(b) Reconciliation between tax expense and accounting profit at an applicable

tax rate:

Profit before taxation

2018

2017

(restated)

HK$'000

HK$'000

397,757

343,527

Notional tax on profit before taxation, calculated at the rates applicable

profit in tax jurisdictions concerned

65,465

56,682

Tax effect of non-deductible expenses

1,664

3,364

Tax effect of non-taxable income

(13,731)

(27,099)

Tax effect of current year's tax losses not recognised

1,051

1,184

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

(1,187)

(1,887)

Tax effect of temporary differences on investment properties and

other property, plant and equipment Over-provision in respect of prior years

38

334

(186)

(176)

Actual tax expense

53,114

32,402

Hong Kong Ferry (Holdings) Company Limited Annual Report 2018