DESTINI Annual Report 2020

31. Taxation Group Company 2020 2019 2020 2019 RM RM RM RM Tax expenses recognised in profit or loss Current year provision: -Malaysian income tax - 196,965 - - -Under provision in prior years 51,128 746,173 - 564,984 51,128 943,138 - 564,984 Deferred tax (Note 24): Origination and reversal of temporary differences (3,404,481) (267,639) - - Under/(Over) provision in prior years 576,735 (2,384,357) - (25,093) (2,827,746) (2,651,996) - (25,093) Tax expense for the the financial year (2,776,618) (1,708,858) - 539,891 Malaysian income tax is calculated at the statutory tax rate of 24% (2019: 24%) of the estimated assessable profit for the financial year. Taxation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions. A reconciliation of income tax expense applicable to (loss)/profit before tax at the statutory income tax rate to income tax expense at the effective income tax rate of the Group and of the Company is as follows: Group Company 2020 2019 2020 2019 RM RM RM RM Loss before tax (192,961,454) (251,244,180) (12,044,937) (28,946,932) Taxation at statutory tax rate of 24% (2019: 24%) (46,310,749) (60,298,603) (2,890,785) (6,947,264) Effects of tax rates in other countries 1,051,251 1,088,137 - - Income not subject to tax (2,874,941) (112,440) (133,757) (85,099) Expenses not deductible for tax purposes 16,233,199 20,614,416 1,039,110 697,443 Utilisation of previously unrecognised deferred tax assets (1,434,609) (6,997,738) - - Deferred tax assets not recognised 29,931,368 45,696,689 1,985,432 6,334,920 Under/(Over) provision of deferred tax in prior years 576,735 (2,384,357) - (25,093) Under provision of income tax expense in prior years 51,128 746,173 - 564,984 Tax incentive - (61,135) - - Tax expense for the financial year (2,776,618) (1,708,858) - 539,891 The Group and the Company have the following unutilised tax losses and unabsorbed capital allowances available to carry forward to offset against future taxable profits. The said amounts are subjected to approval by the tax authorities. ANNUAL REPORT 2020 DESTINI BERHAD Notes to Financial Statements 167