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33 URBAN DEVELOPMENT CORPORATION Notes to the Non-Consolidated Financial Statements (Continued) Year ended March 31, 2010

22.

Disclosure of expenses/(income) (cont’d) (b) Profit before taxation is stated after charging/(crediting):

Audit fees Depreciation Directors fees Net foreign exchange gains Employee expenses (see also note 25) Management fees-related parties Gain on disposal of property, plant & equipment Interest expenses 23.

2010 $’000

2009 $’000

13,311 88,361 4,676 ( 22,758) 456,725 (175,444) ( 66) 62,321

13,040 80,205 3,638 ( 45,832) 882,478 (191,112) ( 624) 38,410

Taxation (a) Taxation represents profit for the year adjusted for tax purposes and materially represents income tax @ 33!"#$%&'()*+*,-$./0$1&22&3*,-4 2010 $’000 Current tax expense: Current year charge

2009 $’000

-

2,156

253,108

49,629

253,108

51,785

2010

2009

Profit before taxation

4,360,470

114,780

Computed "expected" tax expense at statutory rates Tax effect of differences between profit for financial statements and tax reporting purposes on: Fair value of gains on investment properties Other items non-deductible for tax purposes

1,453,490

38,260

(1,288,440) 88,058

( 14,079) 27,604

Deferred taxation: Origination and reversal of other temporary differences

(b) Reconciliation of tax charge:

Actual tax charge

253,108

51,785

(c) Taxation losses, subject to agreement with Taxpayer Administration Jamaica, available for relief against future taxable profits, amount to approximately $380 million (2009: $Nil) for the corporation. If unutilised, these can be carried forward indefinitely.

24.

Related party transactions Material transactions with related parties comprised: (i) Subsidiaries: Advances receivable Advance payable Loans

2010 $’000

2009 $’000

45,357 (426,192) 61,188

168,786 (424,265) 13,554

(319,647)

(241,925)

Annreport09 10