DESTINI Annual Report 2018

34. Taxation (Cont’d) 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 2018 2017 2018 2017 RM RM RM RM Profit/(Loss) before tax 9,734,495 43,943,321 (5,037,546) 14,654,982 Taxation at statutory tax rate of 24% (2017: 24%) 2,336,279 10,546,397 (1,209,011) 3,517,196 Effects of tax rates in other countries 101,395 562,048 - - Income not subject to tax (81,344) (2,505,469) - (1,714,343) Expenses not deductible for tax purposes 3,252,751 4,024,397 1,307,345 1,642,357 Utilisation of previously unrecognised deferred tax assets (1,766,214) (190,613) - - Deferred tax assets not recognised 1,704,242 2,741,264 - - Under/(Over) provision of deferred tax in prior years 1,484,734 555,504 (30,765) 24,582 Under provision of income tax expense in prior years 377,086 822,858 733,617 226,134 Tax incentive - (46,869) - Tax expense for the financial year 7,408,929 16,509,517 801,186 3,695,926 Group Company 2018 2017 2018 2017 RM RM RM RM Unutilised tax losses 31,251,000 30,713,300 - - Unabsorbed capital allowances 4,635,100 4,984,300 - - 35,886,100 35,697,600 - - 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. NOTES TO THE FINANCIAL STATEMENTS DESTINI BERHAD ANNUAL REPORT 2018 178