Maxis Berhad | Annual Report 2013

Maxis Berhad | Annual Report 2013 114 12 TAX EXPENSES (CONTINUED) One of the subsidiaries of the Group was granted Investment Allowance under the Last Mile Broadband Tax Incentive by the Ministry of Finance which expired in the financial year 31 December 2012. During the financial year ended 31 December 2012, the Group recognised tax credits of RM31,378,000 arising from the tax incentive. The gazetted Finance Act 2007 introduced a single-tier company income tax system with effect from year of assessment 2008. Under the single-tier system, companies are not required to have tax credits under Section 108 of the Income Tax Act 1967 for dividend payment purposes. Dividends paid under this system are tax-exempt in the hands of the shareholder. The Section 108 tax credit as at 31 December 2007 will be available to the companies until such time that the credit is fully utilised or upon expiry of the six years transitional period on 31 December 2013, whichever is earlier, unless the company opts to disregard the Section 108 credits to pay single-tier dividends under the special transitional provisions of the Finance Act 2007. In the prior year, subject to agreement by the tax authorities, a subsidiary of the Group had sufficient Section 108 tax credits to frank approximately RM7,239,000 of its retained earnings if paid out as dividends. 13 EARNINGS PER SHARE (a) Basic earnings per share Basic earnings per share of the Group is calculated by dividing the profit attributable to ordinary equity holders of the Company for the financial year by the weighted average number of ordinary shares in issue during the financial year. GROUP 2013 2012 Profit attributable to the equity holders of the Company (RM’000) 1,765,462 1,856,299 Weighted average number of issued ordinary shares (’000) 7,501,629 7,500,192 Basic earnings per share (sen) 23.53 24.75 (b) Diluted earnings per share Diluted earnings per share of the Group is calculated by dividing the profit attributable to ordinary equity holders of the Company for the financial year by the weighted average number of shares in issue and issuable under the exercise of share options granted to employees. The weighted average number of issued ordinary shares has been adjusted to assume full conversion of all dilutive potential ordinary shares, which consists solely of share options granted to employees. NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2013 Continued