/ 1 4 5
NOTES TO THE FINANCIAL STATEMENTS
C A M B R I D G E I N D U S T R I A L T R U S T
A N N U A L R E P O R T 2 0 1 5
17.
Gain on disposal of investment property
The gain on disposal of investment property represents the excess of proceeds from disposal over the carrying
value of property disposed of during the previous financial year.
18.
Income tax expense
Group
Trust
2015
2014
2015
2014
$’000
$’000
$’000
$’000
Reconciliation of effective tax rate
Total return for the year before income tax
52,517
45,418
52,362
45,524
Income tax using Singapore tax rate
of 17% (2014: 17%)
8,928
7,721
8,902
7,739
Income not subject to tax
–
(178)
–
(178)
Non-tax deductible items
1,225
2,268
1,251
2,250
Tax transparency
(10,153)
(9,709)
(10,153)
(9,709)
Income tax expense
–
102
–
102
Income tax expense in the previous financial year relates to tax payable on the rental support income received
by the Trust.
In 2013, the Group recorded a gain from the disposal of the Trust’s interest in the 63 Hillview property. The
Manager is of the view that the gain is capital in nature and should not be subject to income tax. No provision has
been made for the contingent tax. If the gain is taxable, income tax payable on the gain, based on management’s
estimate, would be approximately $11.4 million.
