Page 21 - TreasuryChinaTrust

Treasury China Trust Annual Report 2010 76

NOTES TO THE FINANCIAL STATEMENTS

Period from 19 May 2010 (date of constitution) to 31 December 2010

23 Income tax expense

Period from 19/5/2010 to 31/12/2010 $’000

Current tax expense

Withholding income tax 778

Deferred tax expense

Origination of temporary differences

– Changes in fair value of investment properties 12,205

12,983

Reconciliation of effective tax rate

Profit before taxation 52,593 Income tax using the PRC tax rate of 25% 13,148 Effect of different tax rates in foreign jurisdictions 1,046 Non-deductible expenses 1,810 Tax exempt income (197) Effect of foreign exchange differences transferred to equity* (4,810) Current period losses for which no deferred tax assets were recognised 1,421 Utilisation of tax losses not recognised in previous years (213) Withholding income tax 778

12,983

* relates to foreign exchange differences arising from inter-company loans, which in substance form part of a subsidiary’s net investment in a foreign operation. Such foreign exchange differences are transferred to foreign currency translation reserve during consolidation.

24 Amount available for distribution

Period from 19/5/2010 to 31/12/2010 $’000

Reconciliation from net profit to distribution to Unitholders

Amount available for distribution at the date of constitution – Profit after income tax 39,610 Distribution adjustments (Note A) (35,510) Amount from operations available for distribution to Unitholders 4,100 Realised gains available for distribution to Unitholders (Note B) 26,803 Less: Distribution made during the period (6,005)

Amount available for distribution at the end of the period 24,898