Annual Report 2019

Explanatory Notes 30 SEPTEMBER 2019 11 TAXATION (CONT’D) GROUP COMPANY Sep-19 Sep-18 Sep-19 Sep-18 MUR m MUR m MUR m MUR m Accounting profit before tax 453.1 316.6 301.7 4.5 Statutory income tax rate of 15% (2018: 15%) 68.0 50.4 45.3 0.7 Corporate social responsibility tax at 2% (2018: 2%) 5.6 11.1 - - Tax losses utilised (1.9) - (1.9) - Deferred tax not recognised 4.6 9.2 - 0.5 CSR impact on permanent differences (2.6) (1.4) - - Under provision in previous years (1.1) 1.7 - - Income not subject to tax (154.3) (9.3) (60.0) (9.8) Effect of partial exemption on interest income 75.5 - - - Non–deductible expenses 92.4 11.0 19.3 8.6 Income tax expense 86.2 72.7 2.7 - Main items of non deductible expense include unrealised exchange losses, fair value loss on financial asset and expense attributable to exempt income. Income not subject to tax includes dividend income and net gain on business combination. (b) Income tax (assets)/liabilities GROUP COMPANY Sep-19 Sep-18 Sep-19 Sep-18 MUR m MUR m MUR m MUR m At 1 October, 33.0 28.3 - - Paid during the year (83.2) (88.4) - - Charge for the year 44.6 91.3 2.7 - (Under)/over provision in previous year (1.1) 1.6 - - Distribution of disposal group (5.5) - - - Acquisition of subsidiaries - 0.2 - - (12.2) 33.0 2.7 - Analysed as follows Income tax assets (18.3) - - - Income tax liabilities 6.1 33.0 2.7 - (12.2) 33.0 2.7 - CIM FINANCIAL SERVICES LTD / ANNUAL REPORT 2019 110