NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2018 8 FINANCE COSTS GROUP
Finance lease interest
2018 ($) -
2017 ($) 349
COMPANY
2018 ($) -
2017 ($) 349
9 INCOME TAX EXPENSE (BENEFIT) Group Current income tax Deferred income tax Under provision in prior year
2018 ($) 89,391 89,391
2017 ($) (13,462) 9,651 (3,811)
The reconciliation of income tax expense (benefit) to the amount of income tax determined by applying the Singapore statutory tax rate to profit (loss) before taxation is as follows: Group Profit (loss) before taxation Tax calculated at a tax rate of 17% Deferred tax asset recognised Utilisation of capital allowances Expenses not deductible for tax purposes Tax exemption * Income not taxable for tax purposes Deferred tax asset not recognised Under provision in prior year
2018 ($) 165,812
2017 ($) (133,690)
28,188 89,391 (31,409) 29,573 (24,669) (2,687) 1,004 89,391
(22,727) (13,462) (32,099) 25,590 26,377 (2,014) 4,873 9,651 (3,811)
* The Company is an approved charity under the Charities Act, Cap. 37 and has been accorded the status of an IPC (Note 1). All registered and exempt charities will enjoy automatic income tax exemption and do not need to file income tax returns effective from the Year of Assessment 2009. As at the end of the reporting period, the Group has unutilised tax losses from its subsidiary, Centre for Research on Islamic and Malay Affairs Pte Ltd, of approximately $1,614,717 (2017: $1,608,811) which can be carried forward to set-off against future taxable profits, subject to provision of Section 37 and Section 23 of the Singapore Income Tax Act. The potential deferred tax assets arising from these unutilised tax losses has not been recognised in the Group’s financial statements because of the uncertainty of the future taxable profit.
Association of muslim professionals | Annual Report 2018 62