MKH Annual Report 2019

143 M K H B e r h a d 8. TAX EXPENSE (CONT’D) As mentioned in Note 3, the tax effects of deductible temporary differences, unused tax losses and unused tax credits which would give rise to net deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the deductible temporary differences, unused tax losses and unused tax credits can be utilised. As of 30 September 2019, the estimated amount of deductible temporary differences, unused tax losses and unused tax credits, for which the net deferred tax assets are not recognised in the financial statements due to uncertainty of realisation, is as follows: The Group 2019 2018 RM RM Unused tax losses 47,675,561 32,329,597 Unabsorbed capital allowances 144,249 108,856 Other temporary differences 130,565,977 95,008,800 178,385,787 127,447,253 Based on Finance Act, 2018, the untilised tax losses which are available to offset against future taxable profits up to year of assessment (“YA”) 2019 can only be carried forward up to seven (7) consecutive YAs to YA 2026. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2019