Integrated Report 2020

INTEGRATED REPORT 2020 CIM FINANCIAL SERVICES LTD Explanatory Notes 30 SEPTEMBER 2020 GROUP COMPANY (a) Income tax expense (cont’d) Sep-20 MUR m Sep-19 MUR m Sep-20 MUR m Sep-19 MUR m Accounting profit before tax 268.2 453.1 129.4 304.4 Statutory income tax rate of 15% (2019: 15%) 40.2 68.0 19.4 45.7 Effect of different tax rates in other countries 0.1 - - - Corporate social responsibility tax at 2% (2019: 2%) 23.2 5.6 1.5 - Tax losses utilised (2.6) (1.9) - (1.9) Deferred tax not recognised 30.6 4.6 - - CSR impact on permanent differences (8.4) (2.6) - - Over/(under) provision in previous year 0.6 (1.1) 0.5 - Income not subject to tax (23.8) (154.3) (21.8) (60.0) Effect of deferred taxation on partial exemption of interest income (28.0) 75.5 - - Tax losses for which no deferred income tax asset was recognised (0.1) - - - Non–deductible expenses 45.6 92.4 9.2 18.9 Income tax expense 77.4 86.2 8.8 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. GROUP COMPANY (b) Income tax liabilities Sep-20 MUR m Sep-19 MUR m Sep-20 MUR m Sep-19 MUR m At 1 October (12.2) 33.0 2.7 - Paid during the year (44.1) (83.2) (6.4) - Charge for the year 125.8 44.6 8.3 2.7 Over/(under) provision in previous year 46.1 (1.1) - - Distribution of disposal group - (5.5) - - 115.6 (12.2) 4.6 2.7 Analysed as follows Income tax assets - (18.3) - Income tax liabilities 115.6 6.1 4.6 2.7 115.6 (12.2) 4.6 2.7 11. TAXATION (CONT’D) 111