DMIT Annual Report 2017

N OTES TO THE C ONSOLIDATED F INANCIAL S TATEMENTS (Thousands of US dollars) Dar Al-Maal Al-Islami Trust 75 32. Taxes (continued) A reconciliation between the reported income tax and the amount computed, using the weighted average of applicable domestic corporate tax rates, is as follows: 2017 2016 Net accounting (loss) (20,048) 10,317 Attributable to zero tax jurisdictions (75,851) (58,843) Attributable to taxable jurisdictions 55,803 69,160 Weighted average tax rate 44% 35% Weighted average effective tax (24,555) (23,864) Government levied exceptional tax (1,870) (1,643) Effective tax expense (26,425) (25,507) The relationship between profit before taxes and non-controlling interests and the expected current income tax expense reflects the mix of profits earned in jurisdictions with relatively high tax rates and those with relatively low tax rates. Deferred tax assets and liabilities arises at banking subsidiary in Pakistan. Deferred tax assets mainly arises due to different treatment within tax law for provision for impairment in investment in financing and diminution in the value of investment. Similarly differed tax liabilities arises mainly on account of revaluation of fixed assets and different depreciation rates within the tax law. 33. Non-controlling interests The consolidated financial statements include 100% of the assets, liabilities and earnings of consolidated companies. The ownership interests of the other shareholders are called non-controlling interests. The following table summarises the non-controlling shareholders' interests in the equity of consolidated subsidiaries: 2017 2016 (Restated) Non-controlling Non-controlling % % Ithmaar Holding B.S.C. and wholly owned subsidiaries 50.4 205,593 54 247,309 Faysal Bank Limited 33 113,980 33 109,780 Dilmunia Development Fund I LP 60 103,000 60 103,000 Gulf Investors Asset Management 27 5,548 27 6,162 Health Island B.S.C. (C) 50 49,386 50 63,176 Cityview Real Estate Development B.S.C. (C) 49 (4,490) 49 (2,694) Sakana Holistic Housing Solutions B.S.C. (C) 50 4,165 50 5,079 477,182 531,812 The non-controlling interest appropriation in the consolidated statement of income of USD 31.8 million represents the non-controlling shareholders' share of the loss of these subsidiaries for 2017 (2016: USD 21.2 million profit).