Consolidated Annual Report 2021

65 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED | CONSOLIDATED ANNUAL REPORT 2021 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED Notes to the Consolidated Financial Statements For the year ended March 31, 2021 (Expressed in Barbados dollars) 38 9. Taxation Taxation comprised the following: 2021 2020 Current tax expense $ 96,208 162,667 Deferred tax charge 2,024 5,725 Tax expense $ 98,232 168,392 The tax on the Group’s profit before taxation differs from the theoretical amount that would arise using the statutory rate of corporation tax as follows: 2021 2020 Net income before taxation $ 9,624,400 18,563,077 Tax calculated at a rate of 5.50% (2020 – 5.50%) 529,342 1,020,969 Income not subject to tax (433,665) (1,014,547) Effect of different tax rates (11,972) 29,104 Deferred tax asset not recognized 9,225 44,489 Items not deductible for tax purposes 5,302 47,408 Prior year’s under provision of taxes - 40,969 Tax expense $ 98,232 168,392 Deferred taxation The movement of deferred tax liability is as follows: 2021 2020 Beginning of the year $ 66,052 60,327 Deferred tax charge 2,024 5,725 End of year $ 68,076 66,052 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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