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81
SIA Annual Report 02/03
Notes to the Financial Statements
31 March 2003
11 Taxation (in $ million)
The Group The Company
2002-03 2001-02 2002-03 2001-02
Current taxation
Provision for the year 199.0 94.7 152.1 40.4
Under/(over) provision in respect of prior years 79.9 (75.3) 88.0 (72.7)
Share of joint venture companies taxation
for the year 3.0 3.0 – –
Share of associated companies taxation:
– provision/(write-back) for the year 21.2 (42.1) – –
– over provision in respect of prior years (14.4) – – –
288.7 (19.7) 240.1 (32.3)
Deferred taxation
(Write-back)/provision for the year (9.4) 206.5 (36.3) 188.1
(Over)/under provision in respect of prior years (132.2) 17.7 (136.6) 17.7
Share of associated companies (over)/under
provision in respect of prior years (11.8) 29.3 – –
(153.4) 253.5 (172.9) 205.8
135.3 233.8 67.2 173.5
Adjustment for reduction in Singapore
corporate tax rate (277.8) – (225.1) –
(142.5) 233.8 (157.9) 173.5
On 3 May 2002, the Government announced a reduction in the corporate tax rate from 24.5% to 22.0% with
effect from Year of Assessment 2003. In accordance with SAS 12 (2001) Income Taxes, and SAS 10 (2000) Events
After the Balance Sheet Date, this was considered a non-adjusting subsequent event for the financial year ended
31 March 2002, and accordingly the tax expense for that year was computed at 24.5%. The financial effect of the
reduction in tax rate is reflected in the current financial year. The aggregate adjustments in 2002-03 of the prior
year’s current and deferred taxation charges are $277.8 million and $225.1 million for the Group and the Company
respectively.
A reconciliation between taxation and the product of accounting profit multiplied by the applicable tax rate for the
years ended 31 March is as follows:
The Group The Company
2002-03 2001-02 2002-03 2001-02
Profit before taxation 976.8 925.6 460.1 740.7
Taxation at statutory tax rate of 22.0%
(2001-02: 24.5%) 214.9 226.8 101.2 181.5
Adjustments
Income not subject to tax (37.2) (117.6) (5.0) (55.0)
Expenses not deductible for tax purposes 27.2 162.2 10.6 101.0
Higher/(lower) effective tax rates of other
countries 9.7 (2.2) 9.0 6.3
Over provision in respect of prior years, net (78.5) (28.3) (48.6) (55.0)
Effect of change in statutory tax rate (277.8) – (225.1) –
Others (0.8) (7.1) – (5.3)
Taxation (142.5) 233.8 (157.9) 173.5