Cathay Pacific 2009 Annual Report Download - page 64

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5. Taxation
2009
HK$M
2008
(restated)
HK$M
Current tax expenses
– Hong Kong profits tax 36 41
– Overseas tax 264 330
– Over provisions for prior years (259) (234)
Deferred tax
– Origination and reversal of temporary differences 242 (1,394)
– Decrease in tax rate –(76)
283 (1,333)
Hong Kong profits tax is calculated at 16.5% (2008: 16.5%) on the estimated assessable profits for the year.
Overseas tax is calculated at rates of tax applicable in countries in which the Group is assessable for tax. Tax
provisions are reviewed regularly to take into account changes in legislation, practice and status of negotiations (see
note 30(d) to the accounts).
A reconciliation between tax (charge)/credit and accounting profit/(loss) at applicable tax rates is as follows:
2009
HK$M
2008
(restated)
HK$M
Consolidated profit/(loss) before tax 5,147 (9,805)
Notional tax calculated at Hong Kong profits tax rate of 16.5% (2008: 16.5%) (849) 1,618
Expenses not deductible for tax purposes (229) (199)
Tax provisions over provided in prior years 259 234
Effect of different tax rates in overseas jurisdictions 320 (808)
(Unused tax losses not recognised)/tax losses recognised (19) 343
Income not subject to tax 235 69
Effect on opening deferred tax balances resulting from a change in tax rate –76
Tax (charge)/credit (283) 1,333
Further information on deferred tax is shown in note 18 to the accounts.
Notes to the Accounts STATEMENT OF COMPREHENSIVE INCOME
62