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35
CREATIVE TECHNOLOGY LTD AND ITS SUBSIDIARIES
Provisions for commitments and obligations of US$6,489,000 as at 30 June 2012 relates to provisions made by QMax for
its commitments for expenditures and obligations to third parties relating to its wireless broadband project.
The QMax wireless broadband project was suspended in the year ended 30 June 2012 as the vendor for the equipment has
failed to deliver on the key network performance requirements set out in the relevant supply contract. The Company and
QMax have given notice to the vendor to terminate or rescind the supply contract on the grounds of material breach of the
contract and/or misrepresentations by the vendor. The Company and QMax initiated legal proceedings against the vendor
to recover damages and all losses suffered in relation to the wireless broadband project.
Pending the outcome of the legal proceedings, full provisions have been made for the impairment of equipment and related
intangible assets for the project, as well as provisions for commitments for other expenditures and obligations to third parties
relating to the project.
8. INCOME TAXES
Group
2013 2012
US$’000 US$’000
Tax (credit) expense aributable to prot (loss) is made up of:
Current income tax:
- Tax expense for current nancial year – 5
- Withholding tax  317
 322
Under (over) provision in respect of previous years :
- Current income tax 2 (10)
- Deferred income tax (Note 23)  –
(2,501) 312
The tax expense on results differs from the amount that would arise using the Singapore standard rate of income tax as explained
below:
Group
2013 2012
US$’000 US$’000
Prot (loss) before income tax 14,161 (83,584)
Tax calculated at tax rate of 17% (2012: 17%) 2,407 (14,209)
Eects of
- tax exempt (income) loss ( 1,640
- income not subject to tax  (372)
- expenses not deducble for tax purposes 372 3,091
- dierent tax rates in other countries 354 55
- deferred tax assets not recognised  11,022
- ulisaon of tax losses and other reserves  (1,222)
- withholding tax  317
Tax expense  322
A deferred tax liability of US$2,700,000 (2012: Nil) was written back in the nancial year ended 30 June 2013. The deferred
tax liability write-back relates to an adjustment to the Group’s provision for the tax exposure of a foreign subsidiary
company.