47 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED | CONSOLIDATED ANNUAL REPORT 2020 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED Notes to the Consolidated Financial Statements For the year ended March 31, 2020 (Expressed in Barbados dollars) 30 9. Taxation Taxation comprised the following: 2020 2019 Current tax expense $ 162,667 65,768 Deferred tax charge (recovery) 5,725 (93,814) Tax expense (recovery) $ 168,392 (28,046) 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: 2020 2019 Income before taxation $ 18,563,077 10,716,108 Tax calculated at a rate of 5.50% (2019 – 5.50%) 1,020,969 589,386 Income not subject to tax (1,014,547) (743,995) Change in tax rate - (98,701) Effect of different tax rates 29,104 8,751 Deferred tax asset not recognized 44,489 28,015 Expiration of unutilized tax losses - 2,516 Items not deductible for tax purposes 47,408 185,917 Prior year’s under provision of taxes 40,969 65 Tax expense (recovery) $ 168,392 (28,046) Deferred taxation The movement of deferred tax liability is as follows: 2020 2019 Beginning of the year $ 60,327 154,141 Deferred tax charge (recovery) 5,725 (93,814) End of year $ 66,052 60,327 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.
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