MISC Annual Report 2017

NOTES TO THE FINANCIAL STATEMENTS 207 Financial Statements 8. (a) FINANCE COSTS Group Corporation 2017 RM'000 2016 RM'000 2017 RM'000 2016 RM'000 Interest expense: Subsidiaries - - 158,914 34,588 Third parties 245,333 177,509 1,658 526 Sukuk Murabahah - 262 - - Unwinding of discount on provisions 19,680 70,129 19,680 70,129 Total finance costs 265,013 247,900 180,252 105,243 (b) FINANCE INCOME Group Corporation 2017 RM'000 2016 RM'000 2017 RM'000 2016 RM'000 Interest income: Subsidiaries - - 148,127 165,238 Joint ventures 1,595 2,734 1,595 2,654 Deposits 94,894 47,542 36,506 11,293 Total finance income 96,489 50,276 186,228 179,185 9. TAXATION Group Corporation 2017 RM'000 2016 RM'000 2017 RM'000 2016 RM'000 Current income tax: Malaysian income tax 38,062 31,490 - - Foreign tax 7 8,807 - - Overprovision in prior year: Malaysian income tax (7,114) (30,493) - - Foreign tax - (1,690) - - 30,955 8,114 - - Deferred tax: Relating to origination and reversal of temporary differences (14,504) (13,270) - - (Over)/under provision in prior year (3,562) 25,847 - - (18,066) 12,577 - - Taxation for the year 12,889 20,691 - - Domestic current income tax is calculated at the statutory tax rate of 24% (2016: 24%) of the estimated assessable profit for the financial year.