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96
Singapore Airlines Annual Report 05/06
10 Taxation (in $ million)
The Group
2005-06 2004-05
Current taxation
Provision for the year 193.3 146.6
Under/(over) provision in respect of prior years 78.7 (85.8)
Share of joint venture companies’ taxation (0.8) 0.4
Share of associated companies’ taxation 62.3 21.2
Reversal of tax contingency provision no longer required 4.0 –
337.5 82.4
Deferred taxation
Movement in temporary differences 122.4 190.9
(Over)/under provision in respect of prior years (107.3) 83.9
Share of associated companies’ taxation – 30.1
15.1 304.9
352.6 387.3
The Group has tax losses of approximately $14.7 million (2005: $17.0 million) that are available for offset against future taxable
profi ts of the companies in which no deferred tax assets are recognised due to uncertainty of its recoverability. The use of the
tax losses are subject to the agreement of the tax authorities and compliance with certain provisions of the tax legislation of the
respective countries in which the companies operate.
A reconciliation between taxation expense and the product of accounting profi t multiplied by the applicable tax rate for the years
ended 31 March is as follows:
The Group
2005-06 2004-05
R1
Profi t before taxation 1,662.1 1,791.0
Taxation at statutory tax rate of 20.0% 332.4 358.2
Adjustments
Income not subject to tax (44.4) (27.8)
Expenses not deductible for tax purposes 69.4 37.5
Higher effective tax rates of other countries 26.3 18.4
(Over)/under provision in respect of prior years, net (28.6) 2.4
Income under an incentive scheme (3.7) (4.8)
Reversal of tax contingency provision no longer required 4.0 –
Others (2.8) 3.4
Taxation 352.6 387.3
R1
2004-05 fi gures have been restated for the effect of adopting FRS 102 [see Note 3(d)].
NOTES TO THE FINANCIAL STATEMENTS
31 March 2006