Page 103 - TreasuryChinaTrust2011

101
24 INCOME TAX EXPENSE
Year ended
31/12/2011
Period from
19/5/2010 to
31/12/2010
$’000 $’000
Current tax expense
Withholding income tax 1,505 778
PRC income tax 561 –
2,066 778
Deferred tax expense
Origination and reversal of temporary differences 86,911 12,205
88,977 12,983
Reconciliation of effective tax rate
Profit before taxation 298,333 52,593
Income tax using the PRC tax rate of 25% 74,583 13,148
Effect of different tax rates in foreign jurisdictions 9,056 1,046
Non-deductible expenses 1,576 1,810
Tax exempt income (1,075) (197)
Effect of foreign exchange differences transferred to
equity * 2,481 (4,810)
Utilisation of tax losses not recognised in previous years (699) (213)
Withholding income tax 1,505 778
Others 1,550 1,421
88,977 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 the foreign currency translation reserve
in the consolidated financial statements of the Group.
SAR1112034_TCT_AR_().indb 101 3/23/2012