Page 273 - Full Book_24.4.2021

NOTES TO THE
FINANCIAL STATEMENTS in retrospect

|
for the financial year ended 31 december 2020 (continUed)
the Will to Suceed

|
43 TAX EXPENSE (CONTINUED)
a reconciliation of effective tax expense for the Group and company are as follows:
Group Company achieving a leading repute
2020 2019 2020 2019
RM’000 RM’000 RM’000 RM’000
|
Profit before tax 1,097,285 1,205,014 270,919 351,852

income tax calculated using
Malaysian tax rate of 24% 263,348 289,203 65,021 84,444 Paving the Way for a Sustainable future
non-deductible expenses 81,454 94,869 9,044 4,004
non-deductible Sukuk’s finance cost 13,136 12,644 13,136 12,644
non-taxable income (111,455) (130,115) (85,003) (98,821)
effect of tax rates in foreign jurisdictions 38 2 – –
Zakat (2,591) (3,403) – –
243,930 263,200 2,198 2,271 267
over provision in prior years (30,361) (5,966) (7) (16)
Under provision of deferred tax 2,760 151 – –

tax expense 216,329 257,385 2,191 2,255

recognised in other comprehensive income:
deferred tax expense adhering to the best Governance Practices
other investment (2,467) (6,300) – –
Provisions 134 39 – –
financial assets at fair value through
other comprehensive income (fvoci) 5,492 (53,040) – – |

3,159 (59,301) – –

the inland revenue board (“irb”) had, on 8 September 2017, issued to Syarikat takaful malaysia Keluarga berhad (“takaful Laying the Foundation for Financial Growth
malaysia”) notices of additional assessment (i.e. form Ja) for the years of assessment (“ya”) 2012, 2013, and 2014.
the additional tax payable by takaful malaysia under the above-mentioned notices is rm12,561,630.50. as a result of
the above, irb had also treated the tax returns made by takaful malaysia for the above years of assessment as incorrect,
and imposed a penalty of rm6,200,802.97 to takaful malaysia.
takaful malaysia has paid the additional tax on 4 october 2017 and submitted an appeal (form Q) to Special commissioner of |
additional information & disclosure Summary
income tax against the notice of assessment on 5 october 2017.
takaful malaysia is of the view that there are strong justifications for its appeal against certain matters raised by irb and have
treated the related tax payment of rm16,741,000.00 as tax recoverable.
the matter above has been fixed for hearing at the court on 1 and 2 September 2021.
nd
st

|
24 th aGm information