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KUWAIT ENERGY PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2015
23
10.
TAXATION
Year ended
2015
Year ended
2014
USD 000’s
USD 000’s
Tax on profit on ordinary activities
Current tax:
Foreign tax
2,096
8,800
Total current tax
2,096
8,800
Deferred tax:
Foreign tax
163
-
Total deferred tax
163
-
Total taxation charge
2,259
8,800
Corporation tax in the Company’s country of domicile is calculated at 0% on assessable profits for all years shown, this
rate being the applicable statutory tax rate for international businesses that are tax resident in Jersey.
Taxation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions.
No taxation charge or credit arose in connection with the discontinued operations or in their disposal in the previous year.
Factors affecting the tax charge for the 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 result before tax is as follows:
Year ended
2015
Year ended
2014
USD 000’s
USD 000’s
(Loss)/profit on ordinary activities before tax
(60,108)
55,542
Tax on Company profit on ordinary activities at corporation tax rate of 0%
-
-
Effect of different tax rates of subsidiaries operating in other jurisdictions
2,259
8,800
Total taxation charge on profit for the year
2,259
8,800
Deferred taxation
2015
2014
USD 000’s
USD 000’s
Deferred tax liability on fixed asset temporary differences:
At 1 January
-
-
Charge to income statement
163
-
At 31 December
163
-
There are no material unrecognised deferred tax assets at either year end, nor any material unprovided deferred tax arising
on the unremitted earnings of subsidiaries.
The Group operates in jurisdictions where tax law is subject to varying interpretations and potentially inconsistent
enforcement. As a result, there can be practical uncertainties in applying tax legislation to the Group’s activities. Whilst
the Group considers that it operates in accordance with applicable tax law, there are potential tax exposures in respect of
its operations, the impact of which cannot be reliably estimated but could be material.
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