Cathay Pacific 2011 Annual Report Download - page 63

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Notes to the Accounts STATEMENT OF COMPREHENSIVE INCOME
7. Taxation
2011
HK$M
2010
HK$M
Current tax expenses
– Hong Kong profits tax 116 100
– overseas tax 272 241
– (over)/under provisions for prior years (53) 13
Deferred tax
– origination and reversal of temporary differences (note 20) 468 1,108
803 1,462
Hong Kong profits tax is calculated at 16.5% (2010: 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 32(d) to the accounts).
A reconciliation between tax charge and accounting profit at applicable tax rates is as follows:
2011
HK$M
2010
HK$M
Consolidated profit before tax 6,473 15,695
Notional tax calculated at Hong Kong profits tax rate of 16.5% (2010: 16.5%) (1,068) (2,590)
Expenses not deductible for tax purposes (146) (211)
Tax over/(under) provisions arising from prior years 53 (13)
Effect of different tax rates in overseas jurisdictions 223 892
(Tax losses not recognised)/tax losses recognised (55) 79
Income not subject to tax 190 381
Tax charge (803) (1,462)
Further information on deferred tax is shown in note 20 to the accounts.
Cathay Pacific Airways Limited Annual Report 2011 61