BP 2013 Annual Report Download - page 160

11. Taxation
Tax on profit
$ million
2013 2012 2011
Current tax
Charge for the year 5,724 6,664 7,500
Adjustment in respect of prior years 61 252 111
5,785 6,916 7,611
Deferred tax
Origination and reversal of temporary differences in the current year 529 67 5,523
Adjustment in respect of prior years 149 (103) (515)
678 (36) 5,008
Tax charge on profit 6,463 6,880 12,619
In 2013, the total tax charge recognized within other comprehensive income was $1,374 million (2012 $270 million credit and 2011 $1,490 million
credit), and the total tax credit recognized directly in equity was $33 million (2012 $6 million credit and 2011 $7 million credit). See Note 32 for further
information.
Reconciliation of the effective tax rate
The following table provides a reconciliation of the UK statutory corporation tax rate to the effective tax rate of the group on profit before taxation.With
effect from 1 April 2013 the UK statutory corporation tax rate reduced from 24% to 23% on profits arising from activities outside the North Sea.
$ million
2013 2012 2011
Profit before taxation 30,221 18,131 38,228
Tax charge on profit 6,463 6,880 12,619
Effective tax rate 21% 38% 33%
% of profit before taxation
UK statutory corporation tax rate 23 24 26
Increase (decrease) resulting from
UK supplementary and overseas taxes at higher or lower ratesa412 14
Tax reported in equity-accounted entities (2) (5) (3)
Adjustments in respect of prior years 11 (1)
Movement in deferred tax not recognized 22–
Tax incentives for investment (2) (2) (1)
Gulf of Mexico oil spill non-deductible costs –8–
Permanent differences relating to disposalsb(8) – (2)
Foreign exchange 2(1) 1
Other 1(1) (1)
Effective tax rate 21 38 33
aJurisdictions which contribute significantly to this item are Angola, with an applicable statutory tax rate of 50%, the UK, currently with an applicable statutory tax rate of 62% for North Sea activities, and
Trinidad and Tobago, with an applicable statutory tax rate of 55%.
bFor 2013, this relates to the non-taxable gain on disposal of our investment in TNK-BP; for 2011, this mainly relates to the sale of our Upstream interests in Columbia.
156 BP Annual Report and Form 20-F 2013