74 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED Barbados Public Workers’ Co-operative Credit Union Limited Notes to the Consolidated Financial Statements March 31, 2025 (expressed in Barbados dollars) 36 8 Tax on Assets The Group’s subsidiary CAPITA Financial Services Inc, being a deposit-taking licensee, is required to pay tax on its assets effective from June 1, 2016 for entities licensed under Section 22 of the Financial Institutions Act, Cap 324A. The Act states that a deposit taking licensee with total gross assets of $40 million or more and accepts deposits from third parties, shall pay by the 15th of the sixth (6th) month after each assessment quarter, a levy of 0.20% per annum on the average domestic assets of the deposit taking licensee. In the financial year 2017, the levy was increased to 0.35%. Tax on assets expense incurred by the Group for the financial year ended March 31, 2025 amounted to $1,014,502 (2024 - $960,000). 9 Taxation Taxation comprised the following: 2025 $ 2024 $ Current tax expense 159,726 46,536 Over provision of prior year current tax – (4,732) Deferred tax charge 994 53,196 Tax expense 160,720 95,000 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: 2025 $ 2024 $ Net income before taxation 6,179,159 10,206,027 Taxation at the applicable rates on income subject to tax 4.72% - 9% (2024 - 4.72% - 7.85%) 112,393 76,970 Income not subject to tax (1,138) (2,720) Change in tax rate – 54,037 Effect of different tax rates – 748 Deferred tax asset not recognized 112,114 70,049 Items not deductible for tax purposes – (90,213) Tax loss not recognized (47,134) (9,139) Prior years (under)/over provision of taxes (15,515) (4,732) Tax expense 160,720 95,000
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