7.Income tax expense
Recognized in the income statement:
|
|
|
Year |
|
Year ended |
|
Year ended |
|
|
Current tax expense |
|
US $ |
|
US $ |
|
US $ |
|
|
U.K. corporation taxes |
|
— |
|
— |
|
— |
|
|
Overseas taxes |
|
22,000 |
|
287 |
|
774 |
|
|
|
|
|
|
|
|
|
|
|
|
|
22,000 |
|
287 |
|
774 |
|
|
|
|
|
|
|
|
|
|
The main rate of U.K. corporation tax was reduced from 21% to 19% from April 1, 2015 and has been reflected in these consolidated financial statements.
The tax expense recognized for the years ended December 31, 2017, 2016 and 2015 is lower than the standard rate of corporation tax in the U.K. of 19%. The differences are reconciled below:
|
|
|
2017 |
|
2016 |
|
2015 |
|
|
Reconciliation of effective tax rate: |
|
US $ |
|
US $ |
|
US $ |
|
|
Loss on ordinary activities before taxation |
|
(44,788,366 |
) |
(40,324,015 |
) |
(8,515,925 |
) |
|
|
|
|
|
|
|
|
|
|
U.K. Corporation tax at 19% |
|
(1,570,723 |
) |
(449,929 |
) |
(355,889 |
) |
|
Overseas tax at higher rate |
|
(7,669,495 |
) |
(12,954,729 |
) |
(2,297,873 |
) |
|
Effects of: |
|
|
|
|
|
|
|
|
Unrecognized losses |
|
(9,240,218 |
) |
(13,404,371 |
) |
(2,652,988 |
) |
|
Other adjustments-overseas taxes |
|
22,000 |
|
287 |
|
774 |
|
|
|
|
|
|
|
|
|
|
|
Total tax charge |
|
22,000 |
|
287 |
|
774 |
|
|
|
|
|
|
|
|
|
|
There is an unrecognized cumulative deferred tax asset of US$1,783,102, relating to deferred tax on losses generated of US$10,488,833, in the U.K. during the years ended December 31, 2017 and 2016.