On 31 March 2006, CH had a credit balance brought forward on its deferred tax account of $642 000. There was also a credit balance on its corporate income tax account of $31 representing an overestimate of the tax charge for the year ended 31 March 2005.
CH's taxable profit for the year ended 31 March 2006 was $946 000. CH's directo estimated the deferred tax provision required at 31 March 2006 to be $759 000 and the applicable income tax rate for the year to 31 March 2006 as 22%. Calculate the income tax expense that CH will charge in its income statement for the year ended 31 March 2006, as required by IAS 12, Income Taxes.