Annual Report 2019

FAR EAST CONSORTIUM INTERNATIONAL LIMITED 208 For the year ended 31 March 2019 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 10. INCOME TAX EXPENSE (continued) The income tax expense for the year can be reconciled to profit before tax per the consolidated statement of profit or loss as follows: Hong Kong PRC Australia Malaysia Singapore Others Consolidated HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 2019 Profit before tax 571,958 895,395 464,169 19,176 187,566 174,222 2,312,486 Applicable income tax rate 16.5% 25% 30% 24% 17% 19% to 30% Tax at the applicable income tax rate 94,373 223,849 139,251 4,602 31,886 33,984 527,945 Tax effect of expenses not deductible for tax purpose 55,622 11,308 30,710 2,275 9,430 1,546 110,891 Tax effect of income not taxable for tax purpose (64,425) (10,236) (93,818) (605) (2,283) (25,041) (196,408) PRC LAT – 94,226 – – – – 94,226 Utilisation of tax losses previously not recognised (19,204) (1,589) (212) – (430) – (21,435) Tax effect of PRC LAT – (23,557) – – – – (23,557) Tax effect of taxable temporary difference previously not recognised – 13,538 132 – – – 13,670 Utilisation of tax effect of deductible temporary differences previously not recognised (1,022) – – (2,071) – – (3,093) Tax effect of tax losses not recognised 13,495 12,265 – 455 – – 26,215 Tax effect of share of results of associates (3,289) – 640 – – – (2,649) Tax effect of share of results of a joint venture (350) – – – – – (350) Recognition of deferred tax assets for previously unrecognised tax losses (10,000) – – – – – (10,000) (Over) underprovision in prior years 17,934 10,890 (2,038) 182 3 – 26,971 Others (21) (1,789) 842 (223) (1,714) 4,240 1,335 Income tax expense for the year 83,113 328,905 75,507 4,615 36,892 14,729 543,761 Hong Kong PRC Australia Malaysia Singapore Others Consolidated HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 2018 Profit (loss) before tax 459,945 1,081,194 382,259 212,512 (38,620) 58,843 2,156,133 Applicable income tax rate 16.5% 25% 30% 24% 17% 16.5% to 25% Tax at the applicable income tax rate 75,891 270,299 114,678 51,003 (6,565) 10,602 515,908 Tax effect of expenses not deductible for tax purpose 30,644 5,532 11,859 3,363 3,966 2,078 57,442 Tax effect of income not taxable for tax purpose (106,509) (7,829) (30,608) (9,426) (127) (8,860) (163,359) PRC LAT – 144,639 – – – – 144,639 Tax effect of deductible temporary difference not recognised – – 3,557 – 12,377 5,759 21,693 Utilisation of tax losses previously not recognised (10,586) (9,342) – – – (1,612) (21,540) Tax effect of PRC LAT – (36,159) – – – – (36,159) Tax effect of over provision in prior year on current year deferred taxation – – 76,240 – – – 76,240 Utilisation of tax effect of deductible temporary differences previously not recognised (2,431) – – (11,190) – – (13,621) Tax effect of tax losses not recognised 20,541 18,252 – 601 9,379 – 48,773 Tax effect of share of results of associates 2,074 – (826) – – – 1,248 (Over) underprovision in prior years 2,005 25,000 (76,240) (750) (12,171) – (62,156) Others (820) 608 16 872 (225) 1,176 1,627 Income tax expense for the year 10,809 411,000 98,676 34,473 6,634 9,143 570,735 Details of the deferred taxation are set out in note 36.