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KUWAIT ENERGY plc
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended 30 June 2014
36
12.
TAXATION
INCOME TAX EXPENSE
For the six months
period ended 30 June
For the year ended 31 December
2014
2013
2013
2012
2011
Audited
Unaudited
(Restated)
Audited
(Restated)
Audited
(Restated)
Audited
(Restated)
USD 000’s USD 000’s USD 000’s USD 000’s USD 000’s
Tax on profit on ordinary activities
Current tax:
UK (Jersey) tax
-
-
-
-
-
Foreign tax
5,455
3,858
8,097
8,272
8,731
Total Corporation tax
5,455
3,858
8,097
8,272
8,731
Corporation tax in the Company’s country of domicile is calculated at 0% on assessable profits for all periods shown,
this rate being the applicable statutory tax rate for international businesses that are tax resident in Jersey.
Taxation for other jurisdictions are calculated at the rates prevailing in the respective jurisdictions.
Factors affecting the tax charge for the period/year
The difference between the amount of total tax shown above and the amount calculated by applying the standard rate
of Jersey corporation tax to the profit before tax is as follows:
For the six months
period ended 30 June
For the year ended 31 December
2014
2013
2013
2012
2011
Audited
Unaudited
(Restated)
Audited
(Restated)
Audited
(Restated)
Audited
(Restated)
USD 000’s USD 000’s USD 000’s USD 000’s USD 000’s
Profit on ordinary activities before
tax
56,352
(19,001)
5,514
70,241
44,176
Tax on Company profit on
ordinary activities at corporation
tax rate of 0%
-
-
-
-
-
Effect of different tax rates of
subsidiaries operating in other
jurisdictions
5,455
3,858
8,097
8,272
8,731
Total tax charge for the period/year
5,455
3,858
8,097
8,272
8,731
Deferred taxation
Deferred taxation is comprised as
follows:
Deferred tax asset arising on the
recognition of tax losses
-
9,733
-
8,404
8,970
Deferred tax liability on fixed
asset temporary differences
-
(20,663)
-
(24,053)
(31,379)
-
(10,930)
-
(15,649)
(22,409)
During the year ended 2013, deferred tax assets and liabilities pertaining to Russia and Ukraine have been reclassified
to assets and liabilities held for sale together with other assets and liabilities of Russia and Ukraine (see note 13).
There are no material unrecognised deferred tax assets at either year end, nor any material un provided deferred tax
arising on the unremitted earnings of subsidiaries.