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Notes to the Financial Statements
Year ended 31 March 2013
F INANCIAL REPORT FY12/13
146 ASCENDAS REAL ESTATE INVESTMENT TRUST
3 Significant accounting policies (continued)
(i) Taxation (continued)
The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount
of assets and liabilities, using tax rates enacted or substantively enacted at the reporting date. Deferred tax assets and
liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income
taxes levied by the same tax authority on the same taxable entity.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against
which the unused tax losses and credits can be utilised. Deferred tax assets are reviewed at each reporting date and
reduced to the extent that it is no longer probable that the related tax benefit will be realised.
In determining the amount of current and deferred tax, the Group takes into account the impact of uncertain tax positions
and whether additional taxes and interest may be due. The Group believes that its accruals for tax liabilities are adequate
for all open tax years based on its assessment of many factors, including interpretations of tax law and prior experience.
This assessment relies on estimates and assumptions and may involve a series of judgements about future events. New
information may become available that causes the Group to change its judgement regarding the adequacy of existing tax
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The Inland Revenue Authority of Singapore (“IRAS”) has issued a tax ruling on the taxation of the Trust for income earned
and expenditure incurred after its public listing on SGX-ST. Subject to meeting the terms and conditions of the tax ruling,
the Trustee will not be assessed to tax on the taxable income of the Trust distributed in the same financial year. Instead,
the Trustee and the Manager will deduct income tax (if required) at the prevailing corporate tax rate of 17.0% from the
distributions made to Unitholders that are made out of the taxable income of the Trust in that financial year.
However, the Trustee and the Manager will not deduct tax from distributions made out of the Trust’s taxable income that
is not taxed at the Trust’s level to the extent that the beneficial Unitholders are:
(i) Individuals (whether resident or non-resident) who receive such distributions as investment income (excluding
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(iii) Singapore branches of foreign companies which have presented a letter of approval from the IRAS granting waiver
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(iv) Non-corporate Singapore constituted or registered entities (e.g. town councils, statutory boards, charitable
organisations, management corporations, clubs and trade and industry associations constituted, incorporated,
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(v) Central Provident Fund (“CPF”) members who use their CPF funds under the CPF Investment Scheme and where
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(vi) Individuals who use their Supplementary Retirement Scheme (“SRS”) funds and where the distributions received
are returned to the SRS accounts.