8.
INCOME TAX EXPENSE/(CREDIT)
Major components of income taxes
The major components of income taxes for the years ended 31 December 2015 and 2014 are:
Group
2015
2014
$’000
$’000
Current income tax
– Current financial year
–
4
– Over provision in respect of prior periods
–
(166)
–
(162)
Deferred tax
– Under/(over) provision in respect of prior periods
12
(21)
12
(21)
Total income tax expense/(credit) recognised in profit or loss
12
(183)
The reconciliation between tax expense/(credit) and the product of accounting loss multiplied by the
applicable corporate tax rate for the years ended 31 December 2015 and 2014 is as follows:
Group
2015
2014
$’000
$’000
Loss before income tax
(5,636)
(16,934)
Tax at the domestic rates applicable to profits in the countries
where the Group operates
(885)
(3,226)
Tax effect of:
– expenses not deductible for tax purposes
1,091
602
– income not subject to tax
(272)
(278)
Under/(over) provision in respect of prior periods
12
(187)
Tax exemption and tax relief
(30)
(38)
Enhanced tax deduction
(3)
–
Deferred tax assets not recognised
721
3,904
Benefits from previously unrecognised tax losses
(114)
(156)
Share of associates results
(516)
(783)
Others
8
(21)
12
(183)
The above reconciliation is prepared by aggregating separate reconciliations for each national
jurisdiction.
79
HG METAL MANUFACTURING LIMITED
ANNUAL REPORT 2015
NOTES TO THE
FINANCIAL STATEMENTS
For the financial year ended 31 December 2015
