256 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2022 Additional Information We Are Kenanga Message From Our Leaders Our Sustainability Approach How We Are Governed Financial Statements Shareholders’ Information 40. TAXATION AND ZAKAT Group Bank 2022 RM’000 2021 RM’000 2022 RM’000 2021 RM’000 Current income tax: Tax expense for the financial year 14,756 40,917 - 26,132 (Over)/under provision in prior years (4,070) 872 (1,526) 1,109 10,686 41,789 (1,526) 27,241 Deferred tax (Note 19): Relating to origination and reversal of temporary differences 1,979 (10,168) 1,955 555 Over/(under) provision of deferred tax assets in prior years 5,780 (2,572) 2,651 (2,531) 7,759 (12,740) 4,606 (1,976) Zakat 351 372 291 340 Total income tax expense 18,796 29,421 3,371 25,605 Domestic income tax is calculated at the statutory tax rate of 24% (2021: 24%) on the estimated chargeable profit for the financial year. A reconciliation of taxation applicable to profit before taxation at the statutory income tax rate to taxation at the effective tax rate of the Group and of the Bank is as follows: Group Bank 2022 RM’000 2021 RM’000 2022 RM’000 2021 RM’000 Profit before taxation and zakat 74,150 148,236 58,290 120,421 Taxation at Malaysian statutory income tax rate of 24% (2021: 24%) 17,796 35,577 13,990 28,901 Effect of income not subject to tax (6,795) (10,219) (14,518) (4,465) Effect of expenses not deductible for tax purposes 5,064 4,955 2,483 2,251 Deferred tax asset not recognised on unutilised business losses 646 391 - - Deferred tax asset not recognised on unabsorbed capital allowances 24 45 - - Under/(over) provision of deferred tax assets in prior years 5,780 (2,572) 2,651 (2,531) (Over)/under provision of income tax expense in prior years (4,070) 872 (1,526) 1,109 Tax expense for the year 18,445 29,049 3,080 25,265 Zakat 351 372 291 340 Tax expense and zakat for the financial year 18,796 29,421 3,371 25,605
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