| 6. TAX | Close Window |
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| (All amounts in Sri Lanka Rupees millions) |
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| The charge for taxation is made up as follows: | ||
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| Group/Company | ||
| 2003 | 2002 | |
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| Deferred tax charge | 2,092 | 3,218 |
| Deferred tax release | (1,099) | (696) |
| --------- 993 ====== |
--------- 2,522 ====== |
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| No income tax is payable for the year in view of tax losses available
for carry forward. At 31 December 2003, tax losses available for carry
forward amounted to approximately Rs. 2,000 million (2002 - Rs. 8,990
million). The tax on the Company’s profit before tax differs from the theoretical amount that would arise using the basic tax rate of the Company as follows: |
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| Company | ||
| 2003 | 2002 | |
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| Profit before tax | 3,376 --------- |
5,203 --------- |
| Tax calculated at a tax rate of 30% (2002 - 35%) | 1,013 | 1,821 |
| Tax effect of expenses not deductible | 1 | 263 |
| Tax effect of income not subject to tax | (21) | (13) |
| Effect of 5% reduction in tax rate | – | 451 |
| Tax charge | --------- 993 ====== |
--------- 2,522 ====== |