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137

notes to the

financial statements

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2010 (cont’d)

14 TAX EXPENSE (continued)

Group Company 2010 2009 2010 2009 RM’000 RM’000 RM’000 RM’000

The explanation of the relationship between tax expense and proft before tax after zakat is as follows: Numerical reconciliation between tax expense and the

product of accounting proft multiplied by the Malaysia tax rate

Proft before tax after zakat 166,689 143,890 45,749 42,255

Tax calculated at a statutory tax rate of 25% (2009: 25%) 41,672 35,973 11,437 10,564

Income not subject to tax (1,789) (1,350) (2,748) (2,875) Expenses not deductible for tax purposes 11,554 8,207 492 1,233 Tax effects of share of results of associated companies (5,980) (4,722) 0 0 Interest expense capitalised deducted for tax purposes 0 (258) 0 0 Recognition of previously unrecognised tax losses (3,948) (4,042) 0 0 Recognition of previously unrecognised temporary differences (27) (5,451) 0 0 Reversal of deferred tax assets 0 1,909 0 0

Reversal of deferred tax liabilities due to exemption on taxes

arising on disposal of buildings to Al-‘Aqar KPJ REIT (514) (1,311) 0 0 (Over)/under provision in prior years

- tax (1,445) (838) 87 166 - deferred tax 945 1,037 0 0

Tax expense 40,468 29,154 9,268 9,088

Average effective tax rate (%) 24 20 21 22

15 DIVIDENDS

Dividends declared or proposed in respect of the fnancial year ended 31 December 2010 are as follows:

Group/Company 2010 2009 RM’000 RM’000

Interim dividends of 10 sen (2009: 20 sen) gross per share

less 25% (2009: 25%) tax 41,124 31,564

Dividends recognised as distribution to ordinary equity holders

of the Company 41,124 77,382