Annual Report 2020

136 Notes to the Financial Statements Annual Report 2020 Miramar Hotel and Investment Company, Limited 4 Taxation in the consolidated statement of profit or loss (Continued) (b) Reconciliation between tax expense and profit before taxation at applicable tax rates: 2020 2019 HK$’000 HK$’000 Profit before taxation 408,305 1,480,877 Notional tax on profit before taxation, calculated at the rates applicable to profits in the jurisdictions concerned 67,405 248,014 Tax effect of non-deductible expenses 38,669 3,150 Tax effect of non-taxable income (34,729) (118,178) Tax effect of unused tax losses not recognised in the year 29,456 15,138 Tax effect of tax losses not recognised in prior years utilised this year (1,617) (3,720) Under/(over)-provision in prior years 182 (359) Actual tax expense 99,366 144,045