Serba Dinamik Annual Report 2018

251 SERBA DINAMIK HOLDINGS BERHAD ANNUAL REPORT 2018 N O T E S T O T H E F I N A N C I A L S TAT E M E N T 22. Tax expense (continued) Reconciliation of tax expense (continued) Group Company 2018 2017 2018 2017 RM’000 RM’000 RM’000 RM’000 Under provision in prior period 8,015 24,372 1,919 - __________ __________ __________ __________ Total tax expense 44,783 41,279 2,687 140 ========= ========= ========= ========= * Under the preferential tax treatment given to Labuan entities incorporated or registered under the Labuan Companies Act 1990, a subsidiary has qualified and elected to pay tax of RM20,000 per annum. In prior year, Lembaga Hasil Dalam Negeri (“LHDN”) has conducted tax investigation on two subsidiaries of the Group in relation to Year of Assessment 2010 to 2015. The tax investigation has been settled subsequent to year end, with total tax settlement of RM45 million, of which constitute additional tax payable of RM29 million and tax penalty of RM16 million. As at 31 December 2018, the outstanding tax payment for the additional tax payable and tax penalty are amounting to RM3,628,580 (2017: RM16,933,374) and RM1,996,420 (2017: RM9,316,626) respectively. The subsidiaries of the Group have agreed on a instalment plan with LHDN. 23. Compensations to key management personnel Compensations paid/payable to key management personnel are as follows: Group Company 2018 2017 2018 2017 RM’000 RM’000 RM’000 RM’000 Directors of the Group or the Company - fees 693 642 693 642 - remuneration 2,150 1,248 2,150 1,248 - other short-term employee benefits 437 898 437 898 _________ _________ _________ _________ 3,280 2,788 3,280 2,788 -------------- -------------- -------------- --------------