NOTES TO THE FINANCIAL STATEMENTS
FOR THE FInAncIAL yEAR EnDED 30 JunE 2016
8
TAx ExPENSE
Group
2016
2015
$’000
$’000
Tax expense attributable to profits is made up of:
Income tax:
– Current year
705
1,473
– Under provision in prior years
189
102
Deferred tax:
– Current year
(213)
(180)
– Under provision in prior years
28
18
709
1,413
The income tax expense on the results of the financial year varies from the amount of income tax determined by
applying the Singapore statutory rate of income tax to profit before tax due to the following factors:
$’000
$’000
Profit before tax
10,291
9,519
Tax calculated at a tax rate of 17%
1,749
1,618
Singapore statutory stepped income exemption
(141)
(116)
Expenses not deductible for tax purposes
445
391
Income not subject to tax
(86)
(89)
Utilisation of prior year unrecognised deferred tax assets
(4)
(11)
Under provision of taxation in prior years
217
120
Deferred tax assets not recognised for the year
184
201
Effect of tax incentives
(1,575)
(737)
Others
(80)
36
709
1,413
At the reporting date, the Group has unutilised tax losses of approximately $3,543,000 (2015: $2,430,000)
and unabsorbed capital allowances of approximately $841,000 (2015: $336,000) that are available for carry
forward to offset against future taxable income subject to the agreement of the tax authority and compliance
with certain provisions of the tax legislation. Deferred tax assets have been recognised in respect of $344,000
(2015: $Nil) and $798,000 (2015: $Nil) of such losses and capital allowances respectively. No deferred tax asset
has been recognised in respect of the remaining $3,199,000 (2015: $2,430,000) and $43,000 (2015: $336,000)
of such losses and capital allowances as it is not probable that future taxable profits will be sufficient to allow
the related tax benefits to be realised.
83
ISOTEAM LTD.
ANNUAL REPORT 2016
