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EC World Real Estate Investment Trust ANNUAL REPORT 2016
NOTES TO THE
Financial Statements
For the Financial Year ended 31 December 2016
19. Deferred income tax
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current
income tax assets against current income tax liabilities and when the deferred income taxes relate to the same
fiscal authority. The amounts, determined after appropriate offsetting, are shown on the Statements of Financial
Position as follows:
Group
2016
2015
S$’000
S$’000
Deferred income tax assets
– To be recovered after 1 year
(492)
(2,000)
Deferred income tax liabilities
– To be settled after 1 year
258,900
266,595
Deferred income tax liabilities (net)
258,408
264,595
Deferred income tax liabilities of S$833,000 (2015: S$312,000) have not been recognised for the withholding
taxes and other taxes that will be payable on the earnings of its overseas subsidiaries when remitted to the holding
company as the Group is in a position to control the dividend policies of these subsidiaries and provision of such
taxes is made only when there is a plan for dividend distribution.
The movement in deferred income tax assets and liabilities (prior to offsetting of balances within the same tax
jurisdiction) is as follows:
Deferred tax liabilities
Fair value gains
on investment
properties
Accelerated
tax
depreciation
Total
S$’000
S$’000
S$’000
Group
2016
Beginning of the year
265,398
1,197
266,595
Tax charged for the year
3,129
884
4,013
Currency translation differences
(11,656)
(52)
(11,708)
End of the year
256,871
2,029
258,900
2015
Beginning of the period
–
–
–
Acquisition of subsidary
–
886
886
Tax charged for the period
269,543
367
269,910
Currency translation differences
(4,145)
(56)
(4,201)
End of the period
265,398
1,197
266,595