Consolidated Annual Report 2018

BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED | CONSOLIDATED ANNUAL REPORT 2018 48 BARBADOS PUBLIC WORKERS' CO-OPERATIVE CREDIT UNION LIMITED Notes to the Consolidated Financial Statements For the year ended March 31, 2018 (Expressed in Barbados dollars) 33 8. Taxation The corporation tax charge for the year is as follows: 2018 2017 Current tax expense $ 108,136 61,483 Under accrual of prior year taxes - (7,782) Deferred tax charge 70,651 31,310 Tax expense $ 178,787 85,011 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: 2018 2017 Income before taxation $ 17,545,791 16,037,893 Tax calculated at a rate of 25% (2017 - 25%) 4,386,448 4,009,474 Income not subject to tax (4,207,868) (4,059,769) Effect of different tax rates (23,124) (17,018) Expenses not deductible for tax (47,087) 120,975 Movement on deferred tax asset not recognised 72,543 36,207 Prior year’s under provision of taxes 32 (7,782) Other (2,157) 2,924 Tax expense $ 178,787 85,011 Deferred taxation The movement of deferred tax liability is as follows: 2018 2017 Beginning of the year $ 83,490 52,180 Deferred tax charge 70,651 31,310 End of year $ 154,141 83,490 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.