NOTES TO THE FINANCIAL STATEMENTS
19 Income tax expense
Group
Trust
2014
2013
2014
2013
$’000
$’000
$’000
$’000
Reconciliation of effective tax rate
Total return for the year
before income tax
45,418 118,895
45,524 105,537
Income tax using Singapore tax rate of 17% (2013: 17%)
7,721
20,212
7,739
17,941
Income not subject to tax
(178)
(5,947)
(178)
(5,947)
Non-tax deductible items
2,268
(6,872)
2,250
(4,601)
Tax transparency
(9,709)
(7,382)
(9,709)
(7,382)
Income tax expense
102
11
102
11
Income tax expense 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’t 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.
20 Earnings and distribution per unit
(a)
Basic earnings per unit
The calculation of basic earnings per unit is based on the weighted average number of units in issue and
the total return after tax for the financial year.
Group
Trust
2014
2013
2014
2013
$’000
$’000
$’000
$’000
Total return before income tax
45,418 118,895
45,524 105,537
Less: Income tax expense
(102)
(11)
(102)
(11)
Total return after income tax
45,316 118,884
45,422 105,526
Group and Trust
Number of Units
2014
2013
‘000
‘000
Weighted average number of units:
– Units issued at beginning of year
1,239,339 1,216,015
Effect of issue of new units:
– Distribution Reinvestment Plan
13,966
11,368
– Management fees paid in units
173
–
1,253,478 1,227,383
Group
Trust
2014
2013
2014
2013
Basic earnings per unit (cents)
3.615
9.686
3.624
8.598
CAMBRIDGE INDUSTRIAL TRUST | ANNUAL REPORT 2014
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