Consolidated Annual Report 2019

BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED | CONSOLIDATED ANNUAL REPORT 2019 50 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED Notes to the Consolidated Financial Statements For the year ended March 31, 2019 (Expressed in Barbados dollars) 35 9. Taxation Taxation comprised the following: 2019 2018 Current tax expense $ 65,768 108,136 Deferred tax (recovery) charge (93,814) 70,651 Tax (recovery) expense $ (28,046) 178,787 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: 2019 2018 Income before taxation $ 10,716,108 17,545,791 Tax calculated at a rate of 5.50% (2018 – 25.00%) 589,386 4,386,448 Income not subject to tax (743,995) (4,207,868) Change in tax rate (98,701) - Effect of different tax rates 8,751 (23,124) Deferred tax asset not recognized 28,015 72,543 Expiration of unutilized tax losses 2,516 - Items not deductible for tax purposes 185,917 - Items deductible for tax purposes - (47,087) Prior year’s under provision of taxes 65 32 Other - (2,157) Tax (recovery) expense $ (28,046) 178,787 Deferred taxation The movement of deferred tax liability is as follows: 2019 2018 Beginning of the year $ 154,141 83,490 Deferred tax charge (93,814) 70,651 End of year $ 60,327 154,141 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.