TAXATION

6 Months Ended

Jun. 30, 2023

TAXATION

TAXATION

21. TAXATION

The provision (benefit) for income taxes for the six months ended June 30, 2023 and 2022 consisted of the following:

	Six Months Ended June 30,
	2023		2022
Current provision
For the period	$	80,732	$	68,873
Prior periods		-		-
Total current provision		80,732		68,873
Deferred provision		-		-
Total provision	$	80,732	$	68,873

The provision for current taxation represents minimum / final tax under the provisions of the Income Tax Ordinance, 2001 (ITO), as applicable in Pakistan.

	Six Months Ended June 30,
	2023		2022
Current provision
Federal	$	-	$	-
State		-		-
Foreign		80,732		68,873
Total current provision		80,732		68,873
Deferred
Federal		-		-
State		-		-
Foreign		-		-
Total provision	$	80,732	$	68,873

The components of the Company’s deferred income taxes as of June 30, 2023 and December 31, 2022 are as follows:

	June 30, 2023			December 31,  2022
	(Unaudited)
Asset for deferred taxation comprising temporary differences related to:
Unused tax losses	$	9,051,445		$	19,169,614
Provision for doubtful debts		3,135,472			4,878,530
Post employment benefits		222,605			314,490
Provision for stores and spares & stock-in-trade		4,086			6,565
Provision for doubtful advances and other receivables		289,161			464,426
		12,702,769			24,833,625
Liability for deferred taxation comprising temporary differences on other liabilities		(4,445,572	)		(10,380,642	)
Exchange translation adjustment		-			(3,387,811	)
Deferred tax asset	$	8,257,196		$	11,065,173

Deferred tax asset on tax losses available for carry forward has been recognized to the extent that the realization of related tax benefit is probable from reversal of existing taxable temporary differences and future taxable profit. These unused tax losses mainly represent allowable depreciation expenses for indefinite period. However, there are no such tax benefits which remain unrecognized into the financial statements and tax related contingencies have been adequately disclosed in note 17 of these financial statements. Management's assertion of future taxable profit is mainly based on income due to write back of liabilities and business plan to initiate fiber to home services with monetary support from the majority shareholder.