Consolidated Annual Report 2016

BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED CONSOLIDATED ANNUAL REPORT 2016 38 BARBADOS PUBLIC WORKERS' CO-OPERATIVE CREDIT UNION LIMITED Notes to the Consolidated Financial Statements For the year ended March 31, 2016 (Expressed in Barbados dollars) 26 8. Taxation The corporation tax charge for the year is as follows: 2016 2015 Current tax expense $ 223,721 117,077 Under accrual of prior year taxes 76,944 16,396 Deferred tax charge (31,861) 2,256 Tax expense $ 268,804 135,729 The tax on the Group’s income before taxation differs from the theoretical amount that would arise using the statutory rate of corporation tax as follows: 2016 2015 Income before taxation $ 13,451,101 9,777,286 Tax calculated at a rate of 25% (2015 - 25%) 3,362,775 2,444,322 Income not subject to tax (3,338,558) (2,334,089) Effect of different tax rates (9,496) (13,221) Expenses not deductible for tax 43,891 21,020 Movement on deferred tax asset not recognised 161,226 1,301 Prior year’s under provision of taxes 58,156 16,396 Tax loss utilization (9,579) - Other 389 - Tax expense $ 268,804 135,729 Deferred taxation The movement of deferred tax liability is as follows: 2016 2015 Beginning of the year $ 84,041 81,785 Deferred tax charge (31,861) 2,256 End of year $ 52,180 84,041 The deferred tax asset not recognised comprises tax losses and accelerated tax depreciation of the St. Lucia Branch and tax losses of BPW Financial Holdings Inc.