Creative 2002 Annual Report Download - page 43

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41
The provision for income taxes consists of (in US$’000):
Years ended June 30
2002 2001 2000
Singapore $ 4,780 $ 7,971 $ 7,376
Other countries 918 438 2,096
Provision for income taxes $ 5,698 $ 8,409 $ 9,472
Creative’s effective tax provision for fiscal 2002, 2001 and 2000 reconciles to the amount computed by applying the
Singapore statutory rate of 22.0% for 2002, 24.5% for 2001, and 25.5% for 2000 to income before income taxes and
minority interest, as follows (in US$’000):
Years ended June 30
2002 2001 2000
Income tax (benefit) at Singapore statutory rate $ (2,681) $ (29,766) $ 43,609
Tax exempt income
Singapore (13) (834) (18,316)
Others –––
Non-deductible expenses and write-offs 3,013 5,486 3,245
Change in valuation allowances (657) 8,699 5,135
Rate differences and others 6,036 24,824 (24,201)
Provision for income taxes $ 5,698 $ 8,409 $ 9,472
Deferred tax assets at June 30, 2002 and 2001 consisted of the following (in US$’000):
As of June 30
2002 2001
Non-deductible reserves $ 33,778 $ 26,388
Net operating loss carryforwards 20,099 22,518
Other 1,765 2,558
Total deferred tax assets 55,642 51,464
Valuation allowance for deferred tax assets (55,642) (51,464)
$ – $ –
Included in fiscal 2002 and 2001 are deferred tax assets comprising net operating losses of $0.2 million and $1.9 million
and non-deductible reserves of $4.6 million and $5.5 million respectively mainly for the United States previously not
identified and new subsidiary acquired.