Page 120 - SAR141018_Forterra AR 2013

FORTERRA
ANNUAL REPORT 2013
NOTES TO THE
FINANCIAL STATEMENTS
118
25 INCOME TAX EXPENSE (CONTINUED)
Reconciliation of effective tax rate
2013 2012
$’000 $’000
(Loss)/Profit before taxation (46,913) 76,388
Income tax using the PRC tax rate of 25% (2012: 25%) (11,728) 19,097
Effect of different tax rates in foreign jurisdictions 2,868 5,774
Non-deductible expenses 11,533 7,203
Tax exempt income (2,874) (376)
Effect of foreign exchange differences transferred to equity* 4,119 (6,737)
Utilisation of tax losses not recognised in previous years (425) (150)
Deferred tax assets not recognised 1,157 2,294
Under provided in prior years 35 –
Withholding tax 1,090 1,395
Others (177) 1,221
5,598 29,721
* relates to foreign exchange differences arising from inter-company loans which, in substance, form part
of the Group’s net investment in foreign operations. Such foreign exchange differences are transferred
to the foreign currency translation reserve in the consolidated financial statements of the Group.