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StarHub Ltd Annual Report 2015

24 Taxation (continued)

A reconciliation between tax expense and the product of accounting profit multiplied by the applicable corporate tax rate for
the years ended 31 December is as follows:

Group Company Overview
2014
2015 2014 2015 $m
$m $m $m

Profit before taxation 440.2 456.1 542.4 531.9

Income tax using Singapore tax rate of 17% 74.8 77.5 92.2 90.4 Strategy
Income not subject to tax (2.7) (0.1) (54.7) (55.5)
Non-deductible expenses 3.7 4.3
Deferred tax assets not recognised 9.6 2.3 2.7
Utilisation of previously unrecognised deferred tax assets – (8.6) – –
Under/(over) provision in prior year, net (9.6) 3.1
Others 1.8 (0.2) (14.0) (11.2)
Total income tax in income statement (0.1) 85.6 1.7 (1.6)
67.9 –
–
27.5 24.8

The Company’s utilisation of previously unrecognised deferred tax assets relates to unutilised tax losses and unutilised capital
allowances transferred from its subsidiaries under the group tax relief system in the Republic of Singapore.

Income tax recognised in other comprehensive income for the years ended 31 December are as follows:

Group and Company

2015 2014 Performance

$m $m

Cash flow hedge, before taxation 2.3 3.4
Taxation (0.4) (0.6)
Effective portion of changes in fair value of cash flow hedge 1.9 2.8

Governance & Sustainability

Financials