KIM HENG OFFSHORE & MARINE HOLDINGS LIMITED
ANNUAL REPORT 2014
93
NOTES
TO THE FINANCIAL STATEMENTS
21
INCOME TAX EXPENSE
Group
Note 2014
2013
$’000
$’000
Current tax expense
Current year
902
3,253
Over provided in prior years
(676)
–
226
3,253
Deferred tax expense
Movements in temporary differences
(29)
–
14
(29)
–
197
3,253
Group
Note 2014
2013
$’000
$’000
Reconciliation of effective rate
Profit before income tax
5,814
20,346
Tax using the Singapore tax rate of 2014: 17%
(2013: 17%)
988
3,459
Income not subject to tax
(128)
(253)
Non-deductible expenses
109
182
Utilisation of previously unrecognised deferred tax assets
–
(103)
Over provided in prior years
(676)
–
Others
(96)
(32)
197
3,253
Income taxes
Significant judgement is involved in determining the Group’s provision for income taxes. The Group
recognises liabilities for expected tax issues based on estimates of whether additional taxes will be
due. Where the final tax outcome of these matters is different from the amounts that were initially
recognised, such differences will impact the income tax and deferred tax provisions in the period in
which such determination is made.
