9. Taxation (cont’d.) A reconciliation of income tax expense applicable to profit before taxation at the statutory income tax rate to income tax expense at the effective income tax rate of the Group and of the Corporation is as follows: Group Corporation 2016 2015 2016 2015 RM’000 RM’000 RM’000 RM’000 Profit before taxation 2,813,967 2,566,857 1,996,092 778,691 Taxation at Malaysian statutory tax rate of 24% (2015: 25%) 675,352 641,714 479,062 194,673 Effect of different tax rates in other countries/jurisdictions 8,111 (28,209) – – Effect of reduction in tax rate on deferred tax recognised 144 2,093 – – Income not subject to tax: Tax exempt shipping income (606,914) (634,646) (130,513) (260,596) Other tax exempt income (462,410) (15,368) (428,725) (150,490) Expenses not deductible for tax purposes 541,110 352,646 145,499 296,954 Effect of share of results of associates and joint ventures (69,108) (146,594) – – Utilisation of current year’s investment tax allowance – (19,657) – – Utilisation of previously unrecognised tax losses (65,033) (74,931) (65,323) (74,931) Utilisation of previously unrecognised unabsorbed capital allowances (23) (27,970) – (27,970) Deferred tax assets recognised on unutilised investment tax allowances (24,788) (32,336) – – Deferred tax assets not recognised on unutilised reinvestment allowances 30,586 – – – Deferred tax assets not recognised during the year – 22,619 – 22,360 Deferred tax under/(over) provided in prior year 25,847 (1,034) – – Income tax over provided in prior year (32,183) (6,577) – – Taxation for the year 20,691 31,750 – – Financial Statements 211
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