Annual Report 2017-2018

THE AMERICAN CLUB

NOTES TO FINANCIAL STATEMENTS 30 June 2018

18. INCOME TAX

2018 2017 $ $

Tax expense comprises: Current tax expense

103,590

162,930

Under provision in prior financial years

6,677 - 110,267 162,930

Under Section 11(1) of the Income Tax Act, Chapter 134, the Club’s revenue (excluding investment income, interest income and rental income) is exempted from tax if more than 50% of the Club’s gross takings are from its voting members. Investment income, interest income and rental income are taxable at the statutory rate of 17% (2017 : 17%).

The total charge for the year can be reconciled to the accounting loss as follows:

2018 2017 $ $

Loss before tax

(6,250,790)

(2,589,167)

Income tax credit at statutory rate of 17% (2017 : 17%)

(1,062,634) 1,192,149

(440,158) 629,013

Non-deductible items

Effect of revenue that is exempt from taxation Under provision in prior financial years

(25,925)

(25,925)

6,677 - 110,267 162,930

60 2017/18 ANNUAL REPORT