62
TIH Limited
21 Income tax
The Company was granted the Enhanced-Tier Fund Tax Incentive Scheme under Section 13X of the
Singapore Income Tax Act (Chapter 134) with effect from 19 June 2009. Under this scheme, the Company
was granted tax exemption for the life of the Company on specified income in respect of any designated
investment, subject to compliance with stipulated conditions. All other income of the Company was
subject to Singapore income tax. Subsequent to the termination of the Management Agreement on 29 May
2014, the Company is not eligible for the Enhanced-Tier Fund Tax Incentive Scheme for the year ended
31 December 2014 as it did not meet all the conditions. Accordingly, all income of the Company will be
subject to Singapore income tax.
Previously unrecognised tax losses of $289,000 was utilised during the year.
Group
2014
2013
$’000
$’000
Restated
Current tax
Current year
–
4,722
Adjustment for prior years
–
(194)
Withholding tax paid on foreign income
–
1
Tax expense
–
4,529
Reconciliation of effective tax rate
Group
2014
2013
$’000
$’000
Restated
Profit for the year
591
42,717
Tax expense
–
4,529
Profit before tax
591
47,246
Tax using the Singapore tax rate of 17% (2013: 17%)
100
8,032
Non-deductible expenses
124
3
Tax exempt income
(72)
(3,312)
Over provided in prior years
–
(194)
Recognition of tax effect of previously unrecognised tax losses
(289)
–
Current year losses for which no deferred tax asset was recognised
170
–
Others
(33)
–
–
4,529
