CAHYA MATA SARAWAK ANNUAL REPORT 2016

133 Cahya Mata Sarawak Berhad A N N U A L R E P O R T 2 0 1 6 Section 07 Financial StatementS NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2016 11. INCOME TAX EXPENSE The major components of income tax expense for the years ended 31 December 2016 and 2015 are: Group Company 2016 2015 2016 2015 RM’000 RM’000 RM’000 RM’000 Statements of profit or loss and other comprehensive income: Current income tax: - Malaysian income tax 78,896 88,232 60 1,050 - Real property gains tax 2,872 - - - - Under/(over) provision in respect of previous years 1,853 4,623 182 (127) 83,621 92,855 242 923 Deferred income tax (Note 22): - Origination and reversal of temporary differences 1,910 (10,226) 1,030 (232) - Effect of reduction in income tax rate (1,116) 454 - - - Under provision in respect of previous years 413 913 - 157 1,207 (8,859) 1,030 (75) Income tax expense recognised in profit or loss 84,828 83,996 1,272 848 The reconciliation between tax expense and the product of accounting profit multiplied by the applicable corporate tax rate for the years ended 31 December 2016 and 2015 are as follows: Group 2016 2015 RM’000 RM’000 Accounting profit before tax 302,139 388,596 Tax at Malaysian statutory tax rate of 24% (2015: 25%) 72,513 97,149 Adjustments: Share of results of associates 8,441 (8,608) Share of results of joint ventures (5,586) (2,869) Non-deductible expenses 23,128 19,395 Income not subject to tax (13,204) (10,688) Benefits from previously unrecognised tax losses and unabsorbed capital allowances (15) (115) Deferred tax asset recognised on reinvestment allowance (6,431) (17,582) Deferred tax assets not recognised 4,258 1,324 Difference between corporate income tax and real property gains tax 574 - Effect of reduction in income tax rate (1,116) 454 Under provision of income tax in respect of previous years 1,853 4,623 Under provision of deferred tax in respect of previous years 413 913 Income tax expense recognised in profit or loss 84,828 83,996