6. TAX   Close Window  
 
(All amounts in Sri Lanka Rupees millions)
The charge for taxation is made up as follows:
  Group/Company
  2003 2002
Deferred tax charge 2,092 3,218
Deferred tax release (1,099) (696)
  ---------
993
======
---------
2,522
======
 
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:

  Company
  2003 2002
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
======
 
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