32 / 49
KUWAIT ENERGY PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended 30 June 2016
31
10.
TAXATION
Six months ended 30 June
Year ended
31 December
2016
2015
2015
Audited
Unaudited
Audited
US$ 000’s
US$ 000’s
US$ 000’s
Tax on profit on ordinary activities
Current tax:
Foreign tax
(222)
1,168
2,096
Total current tax
(222)
1,168
2,096
Deferred tax:
Foreign tax
-
-
163
Total current tax
-
-
163
Total taxation charge
(222)
1,168
2,259
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 is calculated at the rates prevailing in the respective jurisdictions.
Factors affecting the tax charge for the period
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:
Six months ended 30 June
Year ended
31 December
2016
2015
2015
Audited
Unaudited
Audited
US$ 000’s
US$ 000’s
US$ 000’s
Loss on ordinary activities before tax
(11,411)
(8,697)
(60,108)
Tax on Company profit on ordinary activities at corporation tax rate
of 0%
-
-
-
Effect of different tax rates of subsidiaries operating in other
jurisdictions
(222)
1,168
2,259
Total taxation (income)/charge for the period
(222)
1,168
2,259
Deferred taxation
Deferred tax liability on fixed asset temporary differences:
At 1 January
163
-
-
Charge to income statement
-
-
163
At end of the period
163
-
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.