Singapore Airlines 2009 Annual Report Download - page 127

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10 Taxation (in $ million) (continued)
On 22 January 2009, the Government announced a 1% point reduction in statutory corporate tax rate
from Year of Assessment 2010. The fi nancial effect of the reduction in tax rate was refl ected in the current
fi nancial year. The aggregate adjustment of the prior year’s deferred tax assets and liabilities was $138.2
million for the Group.
The Group has tax losses of approximately $21.9 million (2008: $22.9 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 is 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
2008-09 2007-08
Profi t before taxation 1,198.6 2,547.2
Taxation at statutory corporate tax rate of 17.0% (2007-08: 18.0%) 203.8 458.5
Adjustments
Income not subject to tax (54.5) (61.5)
Expenses not deductible for tax purposes 33.3 45.0
Higher effective tax rates of other countries 16.7 10.6
Overprovision in respect of prior years, net (10.0) (43.7)
Adjustment to deferred tax for reduction in
Singapore statutory corporate tax rate (138.2) -
Others 0.7 1.4
Taxation 51.8 410.3