The American Club 2016/2017 Annual Report

THE AMERICAN CLUB

NOTES TO FINANCIAL STATEMENTS 30 June 2017

18. INCOME TAX

2017

2016

$

$

Current tax

162,930 159,042

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 members. Investment income, interest income and rental income are taxable at the statutory rate of 17% (2016 : 17%).

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

2017

2016

$

$

(Loss) Profit before tax

(2,589,167) 16,217,026

Income tax (credit) expense at statutory rate of 17% (2016 : 17%)

(440,158)

2,756,894

Non-deductible (non-taxable) items

629,013 (2,571,927) (25,925) (25,925) 162,930 159,042

Effect of revenue that is exempt from taxation

60 2016/17 ANNUAL REPORT