Page 86 - GTBank Annual Report 2020 eBook

Income tax expense cont’d

In thousands of Gambian Dalasi Dec.-2020 Dec.-2019
Balance, beginning of the year 15,822 7,923

Exchange difference on translation - -
Charge for the year 88,859 59,732
Payments during the year (77,801) (51,833)
Prior year under-provision - -
26,880 15,822

14.1. Reconciliation of the effective tax rate

The tax charge shown in the income statement differs from the tax charge that would apply if all profits
had been charged at the Bank’s corporate rate. A reconciliation between the tax expense and the
st
accounting profit multiplied by the Bank’s domestic tax rate for the years ended 31 December 2020 and
2019 is as follows:

Dec.- Dec.- Dec.-
In thousands of Gambian Dalasi Dec.-2020
2020 2019 2019
Accounting profit before tax 313,193 199,985
Income tax using the domestic corporation tax rate 88,859 27% 53,995 27%
Non-deductible expenses 32,621 10.42% 17,252 8.60%
Deductible expenses (32,621) -10.42% (11,515) -5.70%
Difference in tax base (1,543) -0.49% (6,809) -3.40%
Total income tax expense in comprehensive income 87,316 28% 52,923 26%

15. Deferred tax

In thousands of Gambian Dalasi Dec.-2020 Dec.-2019
Opening deferred tax 7,674 14,483

Property, plant, Equipment and Software (1,543) (6,809)
Closing deferred tax liability 6,131 7,674

16. Earnings per share

Basic earnings per share are calculated by dividing the net profit attributable to equity holders of the bank
by the weighted average number of ordinary shares in issue during the year.
Annual Report 2020

Guaranty Trust Bank Gambia Limited www.gtbankgambia.com 84