The American Club 2022/2023 Annual Report

PAGE 88

NOTES TO FINANCIAL STATEMENTS 30 JUNE 2023

20. INCOME TAX EXPENSE

2023

2022

$

$

Tax expense comprises: Current tax expense

102,394

-

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 and interest income are taxable at the statutory rate of 17% (2022 : 17%).

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

2023

2022

$

$

Loss before tax

(2,005,021)

(224,033)

Income tax credit at statutory rate 17% (2022 : 17%)

(340,853)

(38,086) 908,987 (273,209) (597,692)

Non-deductible items

460,672 (17,425)

Effect of revenue that is exempt from taxation Utilisation of deferred tax assets not recognised

-

102,394

-

21. CAPITAL COMMITMENTS

2023

2022

$

$

Amounts approved and not contracted for Amounts approved and contracted for

3,222,293

2,007,600

10,030

223,415

THE AMERICAN CLUB SINGAPORE ANNUAL REPORT 2022 / 2023