Creative 2008 Annual Report Download - page 37

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37
The income tax (benefit) expense consists of (in US$’000):
฀ ฀ Years฀ended฀June฀30
฀ 2008฀ 2007฀ 2006
Singapore฀ $฀ 1,445฀฀ $฀ 20,177฀฀ $฀ (9,313)฀
Other฀countries฀ ฀ ฀290฀ ฀ 3,741฀ ฀ 2,163฀
Income฀tax฀expense฀(benefit)฀ $฀ 1,735฀ $฀ 23,918฀ $฀ (7,150)฀
Creative’s effective tax provision for fiscal years 2008, 2007 and 2006 reconciles to the amount computed by applying the
Singapore statutory rate of 18.0% for fiscal years 2008 and 2007 and 20.0% for fiscal year 2006 to (loss) income before
income taxes and minority interest, as follows (in US$’000):
฀ ฀ Years฀ended฀June฀30
฀ 2008฀ 2007฀ 2006
Income฀tax฀(benefit)฀expense฀at฀Singapore฀statutory฀rate฀ $฀ (3,240)฀ $฀ 9,232฀฀ $฀ (25,223)
Tax฀exempt฀loss฀(income)
฀ Singapore฀ ฀ ฀209฀ ฀ 4,068฀฀ ฀ 13,633
฀ Others฀ ฀ (2,014)฀ ฀ (1,806)฀ ฀ (4,547)฀
Non-deductible฀expenses฀and฀write-offs฀ ฀ 2,166฀ ฀ 792฀ ฀ 679
Change฀in฀valuation฀allowances฀ ฀ (577)฀ ฀ (1,247)฀ ฀ 5,692
Rate฀differences฀and฀others฀ ฀ 6,691฀ ฀ 12,936฀ ฀ 12,808
Tax฀refund฀receivable฀ ฀ ฀(1,500)฀ ฀ (57)฀ ฀ (10,192)
Income฀tax฀expense฀(benefit)฀ $฀ 1,735฀ $฀ 23,918฀ $฀ (7,150)฀
Deferred tax assets at June 30, 2008 and 2007 consisted of the following (in US$’000):
฀As฀of฀June฀30
฀ 2008฀ 2007
Reserves฀ $฀ 17,969฀ $฀ 19,889
Net฀operating฀loss฀carryforwards฀ ฀ 75,275฀ ฀ 60,384
Others฀ ฀ 622฀ ฀ 624
Total฀deferred฀tax฀assets฀ ฀ 93,866฀ ฀ 80,897฀
Valuation฀allowance฀for฀deferred฀tax฀assets฀ ฀ (93,866)฀ ฀ (80,897)
฀
฀ $฀ –฀ $฀ –฀