Excel Force MSC Berhad Annual Report 2015

NOTES TO THE FINANCIAL STATEMENTS 31 December 2015 (cont’d) E X C E L F O R C E M S C B E R H A D • A N N U A L R E P O R T 2 0 1 5 91 26. TAX EXPENSE (continued) The numerical reconciliations between tax expense and the product of accounting profit multiplied by the applicable tax rates of the Group and of the Company are as follows: Group Company 2015 2014 2015 2014 RM RM RM RM Profit before tax 9,652,925 10,325,410 9,650,551 9,813,302 Taxation at statutory tax rate of 25% (2014: 25%) 2,413,232 2,581,353 2,412,638 2,453,326 Tax effects in respect of: Non-allowable expenses 598,498 292,185 467,720 192,775 Non-taxable income (679,096) (595,060) (679,096) (567,808) Tax exempt income under pioneer status (177,214) (195,469) - - Real property gains tax 109,814 - 109,814 - Reversal of temporary differences on disposal of long term leasehold land and building (543) (470,689) (543) (470,689) Effect of changes in tax rate (3,195) - (3,195) - Deferred tax assets not recognised 19,613 39,679 - - Utilisation of previously unrecognised deferred tax assets (13,310) - - - 2,267,799 1,651,999 2,307,338 1,607,604 Over-provision of income tax in prior year (60,460) (69,910) (63,155) (69,910) Over-provision of deferred tax in prior year (122,219) (100,691) (120,720) (104,430) 2,085,120 1,481,398 2,123,463 1,433,264 Tax savings of the Group arises from the utilisation of previously unrecognised deferred tax assets and amounted to RM13,310 (2014: RM NIL).