The American Club 2021/2022 Annual Report

PAGE 91 THE AMERICAN CLUB SINGAPORE ANNUAL REPORT 2021 / 2022

NOTES TO FINANCIAL STATEMENTS 30 JUNE 2022

20. INCOME TAX EXPENSE

2022

2021

$

$

Tax expense comprises:

Current tax expense

-

-

For the financial year ended 30 June 2022, less than 50% (2021: 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 and investment income.

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

2022

2021

$

$

Loss before tax

(224,033)

(531,261)

Income tax credit at statutory rate (2021 : 17%)

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

(90,315) 934,843 (272,259) (572,269)

Non-deductible items

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

-

-

21. CAPITAL COMMITMENTS

2022

2021

$

$

Amounts approved and not contracted for Amounts approved and contracted for

2,007,600

1,670,351

223,415

84,677