KUALA LUMPUR (July 8): Westports Holdings Bhd said it overprovisioned deferred tax liabilities by RM17 million in its financial results for the first quarter ended March 31, 2022 (1QFY22), causing the rate of reported effective taxation of 39% for the quarter.
As such, the amount will be canceled in the financial results of 2QFY22. Deferred tax liabilities represent income taxes payable in future periods.
“The adjustment relates to the application of the 33% prosperity tax rate. Temporary differences from the prior year ended December 31, 2021 have been provided based on the appropriate tax rate of 24 % or 33% according to the guidelines or standards,” he said in a filing sent to Bursa Malaysia on Friday July 8.
According to Westports, for 1QFY22 it applied a 24% income tax rate instead of a 33% income tax rate for certain timing differences that were carried forward from FY21, resulting in an overprovision of deferred tax liabilities of RM17 million.
On April 26, Westports announced that after making a tax provision of RM97 million or an effective tax rate of 39% due to the welfare tax, it reported a lower net profit of 151, RM85 million for 1QFY22, down 27.1% from RM208.32 million a year ago.
Revenue for the quarter, however, increased by 1.6% to RM516.36 million from RM508.16 million in 1QFY21.
At the lunch break, shares of Westports were down one sen or 0.28% at RM3.60, bringing the company to a market capitalization of RM12.28 billion.