MKH Annual Report 2020

144 FINANCIAL STATEMENTS ANNUAL REPORT 2020 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 2020, 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 2020 RM 2019 RM Unused tax losses 29,934,961 31,573,538 Unabsorbed capital allowances 157,539 147,284 Other temporary differences 169,948,153 114,740,217 200,040,653 146,461,039 Under the Malaysia Finance Act 2018 which was gazetted on 27 December 2018, any accumulated tax losses brought forward from year of assessment 2018 can be carried forward for another 7 consecutive years of assessment. The unused tax losses will be disregarded upon expiry of the 7 years as below: Business loss incurred in year of assessment: RM Carried forward up to YA Unutilised amount will be disregarded in YA 2020 1,931,634 2027 2028 2019 28,003,327 2026 2027 29,934,961