Urban Renewal Authority 2018-19 Annual Report

150 (expressed in Hong Kong Dollars) NOTES TO THE FINANCIAL STATEMENTS 6. Operating surplus before income tax (Continued) Operating surplus before income tax is arrived at after charging/(crediting) the following items: (Continued) (h) Five highest paid individuals 2019 2018 $’000 $’000 The five individuals whose emoluments were the highest in the Group for the year ended 31 March 2019 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 16,050 16,579 – Provident fund scheme contributions 1,075 470 Sub-total 17,125 17,049 Variable pay 4,357 4,400 Total** 21,482 21,449 Their remuneration fell within the following bands: No. of Individuals No. of Individuals $3,500,001 to $4,000,000 3 2 $4,000,001 to $4,500,000 1 2 $5,000,001 to $5,500,000 1 1 Total 5 5 ** For the year ended 31 March 2019, compensation in lieu of leave of $254,000 (2017/18: $325,000) 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 (2017/18: Nil). (b) As at 31 March 2019, the subsidiaries of the Group have unrecognised deductible temporary differences arising from tax losses of $31,607,000 (31 March 2018: $28,483,000) to carry forward against future taxable income. These tax losses have no expiry date.