N o t e s t o t h e f i n a n c i a l s t a t e m e n t s
Year ended 31 March 2015
3 Significant accounting policies (continued)
(j)
Taxation (continued)
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 liabilities; such changes to tax liabilities will impact tax expense in the period that such
a determination is made.
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
income received through a Singapore partnership);
(ii)
companies incorporated and tax resident in Singapore;
(iii)
Singapore branches of foreign companies which have presented a letter of approval from the IRAS granting
waiver from tax deducted at source in respect of distributions from the Trust;
(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,
registered or organised in Singapore);
(v)
Central Provident Fund (“CPF”) members who use their CPF funds under the CPF Investment Scheme and
where the distributions received are returned to the CPF accounts; and
(vi)
individuals who use their Supplementary Retirement Scheme (“SRS”) funds and where the distributions
received are returned to the SRS accounts.
ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT 2014/15
