for the year ended 31 December 2016
NOTES TO THE
FINANCIAL STATEMENTS
Baker Technology Limited
-
109
-
8.
Incometaxexpense (cont’d)
(b)
Relationship between tax expense and accounting profit
Areconciliationbetween taxexpenseand theproduct of accountingprofitmultipliedby theapplicable
corporate tax rate for the years ended 31December are as follows:
Group
2016
2015
$’000
$’000
Accounting (loss) / profit before tax
(9,222)
11,124
Income tax expense at the applicable tax rate of 17% (2015: 17%)
(1,568)
1,891
Adjustments for tax effect of:
Movement of deferred income tax not recognised
–
(14)
Income not subject to taxation
(501)
(216)
Tax incentive
(138)
(216)
Non-deductible expenses
2,573
742
(Over) / under provision in respect of prior years
(1,312)
(134)
Tax exemption
–
(86)
Others, net
51
(7)
Income tax expense recognised in profit or loss
(895)
1,960
A loss-transfer system of group relief (the “Group Relief System”) for companies was introduced
in Singapore with effect from year of assessment 2003. Under the Group Relief System, a company
belonging to a group of entities may transfer its current year’s unabsorbed capital allowances,
unabsorbed trade losses and unabsorbed donations (loss items) to another company belonging to the
same group, to be deducted against the latter’s assessable income.
