Annual Report 2019

136 Annual Report 2019 Miramar Hotel and Investment Company, Limited Notes to the Financial Statements 4 Taxation in the consolidated statement of profit or loss (Continued) (b) Reconciliation between tax expense and profit before taxation at applicable tax rates: 2019 2018 HK$’000 HK$’000 Profit before taxation 1,480,877 1,818,133 Notional tax on profit before taxation, calculated at the rates applicable to profits in the jurisdictions concerned 248,014 310,954 Tax effect of non-deductible expenses 3,150 24,377 Tax effect of non-taxable income (118,178) (184,137) Tax effect of unused tax losses not recognised in the year 15,138 18,963 Tax effect of tax losses not recognised in prior years utilised this year (3,720) (11,226) Over-provision in prior years (359) (309) Actual tax expense 144,045 158,622