Singapore Airlines 2015 Annual Report Download - page 146

Notes to the Financial Statements
31 March 2015
11 Taxation (in $ million)
Major components of income tax expense
The major components of income tax expense for the years ended 31 March 2015 and 2014 are:
The Group
FY2014/15 FY2013/14
Current taxation
Provision for the year 126.2 164.9
Overprovision in respect of prior years 3.1 (43.2)
129.3 121.7
Deferred taxation
Movement in temporary differences (37.7) (144.2)
Overprovision in respect of prior years (55.4) (34.0)
(93.1) (178.2)
36.2 (56.5)
Deferred taxation related to other comprehensive income:
The Group
FY2014/15 FY2013/14
Available-for-sale financial assets – (0.9)
Cash flow hedges (159.2) 4.3
Actuarial loss on revaluation of defined benefit plans 2.1 (0.2)
(157.1) 3.2
The Group has tax losses (of which no deferred tax asset has been recognised) of approximately $191.8 million (2014: $43.8 million)
that are available for oset against future taxable profits of the companies. This is due to the uncertainty of the recoverability of
the deferred tax asset. 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 profit multiplied by the applicable tax rate for the
years ended 31 March is as follows:
The Group
FY2014/15 FY2013/14
Profit before taxation 442.9 367.9
Less: Share of losses/(profits) of associated and joint venture companies 77.1 (48.8)
520.0 319.1
Taxation at statutory corporate tax rate of 17.0% 88.4 54.2
Adjustments
Income not subject to tax (39.1) (76.5)
Expenses not deductible for tax purposes 26.5 35.5
Higher effective tax rates of other countries 5.6 8.4
Overprovision in respect of prior years, net (52.3) (77.2)
Income subject to concessionary tax rate (0.3) (1.0)
Tax benefit not recognised 8.4 1.0
Others (1.0) (0.9)
Taxation 36.2 (56.5)
144 FINANCIAL