The American Club 2018/2019 Annual Report

NOTES TO FINANCIAL STATEMENTS 30 June 2019

18. INCOME TAX EXPENSE

2019

2018

$

$

Tax expense comprises: Current tax expense

- - -

103,590

Underprovision in prior financial years

6,677

110,267

For the financial year ended 30 June 2019, less than 50% of the Club’s gross takings are from its Voting Members. As such, the Club did not meet the 50% threshold requirements under Section 11(1) of the Singapore Income Tax Act (“SITA”). In this regard, the provisional income tax computation has been prepared on the basis that the Club is deemed to be carrying on a business and will be taxed on its operating surplus (total receipts of income less tax-deductible operating expenses), in addition to income from other sources derived from dealings with non- members, such as interest income.

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

2019

2018

$

$

Loss before tax

(10,966,962)

(6,250,790)

Income tax credit at statutory rate (2018 : 17%)

(1,864,384)

(1,062,634)

Non-deductible items

763,538

1,192,149 (25,925)

Effect of revenue that is exempt from taxation Effect of unused tax losses not recognised as deferred tax assets

-

1,100,846

-

Underprovision in prior financial years

-

6,677

-

110,267

19. COMMITMENTS

(a) Future capital expenditure

2019

2018

$

$

Amounts approved and not contracted for Amounts approved and contracted for

2,554,700 3,816,450

80,385

183,550

(b) Operating lease commitments - the Club as lessor

2019

2018

$

$

Rental income included in the Club’s profit or loss

-

19,083

70

The American Club 2018/19 ANNUAL REPORT