DESTINI Annual Report 2020

Group Company 2020 2019 2020 2019 RM RM RM RM Unutilised tax losses 54,274,322 25,789,837 3,671,041 1,705,700 Unabsorbed capital allowances 1,426,908 987,790 60,047 39,956 Other deductible temporary differences 2,105,643 2,532,487 - - 57,806,873 29,310,114 3,731,088 1,745,656 Deferred tax assets have not been recognised in respect of these items as they may not have sufficient taxable profits to be used to offset. With effect from year of assessment 2019, the unused tax losses are allowed to be carried forward up to a maximum of seven consecutive years of assessment under the current tax legislation. The other temporary differences do not expire under current tax legislation. Pursuant to Section 44(5F) of the Income Tax Act, 1967, the unutilised tax losses can only be carried forward until the following years of assessment: Group Company 2020 2019 2020 2019 RM RM RM RM Unutilised business losses -Not more than 7 years 117,572,739 77,290,764 13,041,941 7,107,084 -Not more than 6 years 74,919,466 31,251,000 2,254,065 - -Not more than 5 years 31,251,000 - - - 223,743,205 108,541,764 15,296,006 7,107,084 Deferred tax assets have not been recognised in respect of these items as they may not have sufficient taxable profits to be used to offset. 24. Deferred Tax Liabilities (Cont’d) Deferred tax assets have not been recognised in respect of the following items: ANNUAL REPORT 2020 DESTINI BERHAD Notes to Financial Statements 161