DESTINI AR 2017

34. Taxation Group Company 2017 2016 2017 2016 RM RM RM RM Tax expenses recognised in profit or loss Current year provision: - Malaysian income tax 16,967,851 12,486,989 3,417,240 - - Under provision in prior years 822,858 390,505 226,134 218,553 - Foreign tax 2,537 - - - 17,793,246 12,877,494 3,643,374 218,553 Deferred tax (Note 26): Origination and reversal of temporary differences (1,839,233) 2,068,509 27,970 - Under provision in prior years 555,504 190,016 24,582 - (1,283,729) 2,258,525 52,552 - Tax expense for the financial year 16,509,517 15,136,019 3,695,926 218,553 Malaysian income tax is calculated at the statutory tax rate of 24% (2016: 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 profit/(loss) 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 2017 2016 2017 2016 RM RM RM RM Profit/(Loss) before tax 45,099,581 46,233,107 14,654,982 (7,632,344) Taxation at statutory tax rate of 24% (2016: 24%) 10,823,899 11,095,960 3,517,196 (1,831,763) Effects of tax rates in other countries 562,048 196,143 - - Income not subject to tax (2,505,469) (177,801) (1,714,343) (19,653) Expenses not deductible for tax purposes 3,746,895 2,480,922 1,642,357 1,796,181 Share of results of associates and joint venture - 76,455 - - Utilisation of previously unrecognised deferred tax assets (190,613) (705,081) - - Deferred tax assests not recognised 2,741,264 1,669,107 - 55,235 Under provision of deferred tax in prior years 555,504 190,016 24,582 - Under provision of income tax expense in prior years 822,858 390,505 226,134 218,553 Tax incentive (46,869) (80,207) - - Tax expense for the financial year 16,509,517 15,136,019 3,695,926 218,553 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. 154 DESTINI BERHAD Financial Statements Notes to the 31 December 2017