URA

120 (expressed in Hong Kong Dollars) NOTES TO THE FINANCIAL STATEMENTS 6. Operating surplus before income tax (Continued) (h) Five highest paid individuals 2018 2017 $’000 $’000 The five individuals whose emoluments were the highest in the Group for the year ended 31 March 2018 include the Managing Director, Executive Directors and two senior management staff. The total emoluments earned by the five highest paid individuals during the year are as follows: Fixed – Salaries 16,579 15,076 – Provident fund scheme contributions 470 676 Sub-total 17,049 15,752 Variable pay 4,400 3,980 Total ** 21,449 19,732 Their remuneration fell within the following bands: No. of No. of Individuals Individuals $3,500,001 to $4,000,000 2 3 $4,000,001 to $4,500,000 2 2 $5,000,001 to $5,500,000 1 – Total 5 5 ** For the year ended 31 March 2018, compensation in lieu of leave of $325,000 (2016/17: $617,000) were excluded from the aggregate sum. 7. Income tax expenses (a) In accordance with Section 19 of the Urban Renewal Authority Ordinance, the Authority is exempted from taxation under the Inland Revenue Ordinance (Chapter 112). No provision for Hong Kong profits tax has been made for the Group’s subsidiaries as they have no estimated assessable income for the year (2016/17: Nil). (b) As at 31 March 2018, the subsidiaries of the Group have unrecognised deductible temporary differences arising from tax losses of $28,483,000 (31 March 2017: capital allowance of $7,182,000 and tax losses of $16,610,000) to carry forward against future taxable income. These tax losses have no expiry date.