Creative 2001 Annual Report Download - page 32

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32
NOTE 9 – INCOME TAXES (Cont’d)
The provision for income taxes consists of (in US$’000):
Years ended June 30
2001 2000 1999
Singapore $ 7,971 $ 7,376 $ 1,346
Other countries 438 2,096 8,574
Provision for income taxes $ 8,409 $ 9,472 $ 9,920
Creative’s effective tax provision for fiscal 2001, 2000 and 1999 reconciles to the amount computed by applying the
Singapore statutory rate of 24.5% for 2001, 25.5% for 2000 and 26% for 1999 to income before income taxes and
minority interest, as follows (in US$’000):
Years ended June 30
2001 2000 1999
Income tax (benefit) at Singapore statutory rate $ (29,766) $ 43,609 $ 32,582
Tax exempt income
Singapore (834) (18,316) (26,446)
Others – (28,511) (2,952)
Non-deductible expenses and write offs 37,795 3,245 2,319
Change in valuation allowances 8,699 5,135 2,603
Rate differences and others (7,485) 4,310 1,814
Provision for income taxes $ 8,409 $ 9,472 $ 9,920
Deferred tax assets at June 30, 2001 and 2000 consisted of the following (in US$’000):
As of June 30
2001 2000
Non-deductible reserves $ 26,388 $ 22,346
Net operating loss carryforwards 22,518 10,444
Other 2,558 2,608
Total deferred tax assets 51,464 35,398
Valuation allowance for deferred tax assets (51,464) (35,398)
$ – $ –
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS