NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2022 (cont’d) FINANCIAL STATEMENTS 37. TAXATION (CONT’D) A reconciliation of income tax expenses applicable to profit before tax at the statutory tax rate to income tax expenses at the effective income tax of the Group and of the Company are as follows: Group Company 2022 2021 2022 2021 RM’000 RM’000 RM’000 RM’000 Profit before tax 404,367 320,683 101,700 30,053 At Malaysian statutory tax rate of 24% (2021: 24%) 97,048 76,964 24,408 7,213 Income exempted from tax (92,026) (70,661) - (433) Income not subject to tax (12,030) (34) (30,000) (240) Expenses not deductible for tax purposes 3,345 6,229 538 1,172 Movement of deferred tax assets not recognised 7,343 (8,469) 5,159 (7,598) Under/(Over) provision of tax expense in prior financial years - current tax 285 (49) 1,327 - - deferred tax - - - - Effects of differential in tax rates of a foreign subsidiary - (2) - - 3,965 3,978 1,432 114 Unrecognised deferred tax assets Deferred tax assets have not been recognised in respect of the following items: Group Company 2022 2021 2022 2021 RM’000 RM’000 RM’000 RM’000 Unutilised tax losses 82,957 73,180 43,407 34,332 Unabsorbed capital allowances 46,831 10,246 14,963 3,426 Accelerated capital allowances (24,843) (12,069) (11,138) (12,024) Other provisions (5,025) (2,035) - - 99,920 69,322 47,232 25,734 In accordance with the provision of the Finance Act 2018, the unutilised business losses are available for utilisation in the next seven consecutive years from when it was incurred, for which, any excess at the end of the seventh year, shall be disregarded. The other temporary differences do not expire under current tax legislation. The Finance Act 2021 stated that the time frame to carry forward unutilised business losses for year of assessment 2019 and subsequent years of assessment be extended from seven to ten consecutive years of assessment. The other temporary differences do not expire under current tax legislation. Deferred tax assets have not been recognised in respect of these items as they may not have sufficient taxable profits to be used to offset. 225
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