Barclays 2009 Annual Report Download - page 319

www.barclays.com/annualreport09 Barclays PLC Annual Report 2009 317
d Administration and general expenses continued
Fees payable for the audit of the Bank’s associates pursuant to legislation comprise the fees for the statutory audit of the subsidiaries and associated
pension schemes both inside and outside Great Britain and fees for the work performed by the associates of PricewaterhouseCoopers LLP in respect of the
consolidated financial statements of the Bank. The fees relating to the audit of the associated pension schemes were £0.5m (2008: £0.2m, 2007: £0.3m).
Other services supplied pursuant to such legislation comprise services in relation to statutory and regulatory filings. These includes audit services for
the review of the interim financial information under the Listing Rules of the UK listing authority and fees paid for reporting under Section 404 of the US
Sarbanes-Oxley Act (Section 404). In 2008 and 2009 fees paid for reporting under Section 404 are not separately identifiable from the fees of the audit
of the Bank’s annual accounts and the Bank’s associates. Fees for the audit of Barclays Bank PLC Group accounts are not separately identifiable from
Barclays PLC, therefore there is no difference in the amounts reported in both Annual Reports.
Other services related to taxation include compliance services such as tax return preparation and advisory services such as consultation on tax matters,
tax advice relating to transactions and other tax planning and advice.
Services relating to corporate finance transactions comprise due diligence related to transactions and other work in connection with such transactions.
Excluded from the total auditors’ remuneration above are fees paid to PricewaterhouseCoopers LLP and associates relating to BGI (discontinued operations)
of £4m (2008: £3m, 2007: £8m).
eTax
The charge for tax is based upon the UK corporation tax rate of 28% (2008: 28.5%, 2007: 30%) and comprises:
2009 2008 2007
£m £m £m
Current tax charge/(credit)
Current year 1,235 1,197 2,013
Adjustment for prior years (131) 98 10
1,104 1,295 2,023
Deferred tax (credit)/charge
Current year 45 (577) (297)
Adjustment for prior years (102) (269) (27)
(57) (846) (324)
Total charge 1,047 449 1,699
The effective tax rate for the years 2009, 2008 and 2007 is lower than the standard rate of corporation tax in the UK of 28% (2008: 28.5%, 2007: 30%).
The differences are set out below:
2009 2008 2007
£m £m £m
Profit before tax 4,560 5,094 6,254
Tax charge at standard UK corporation tax rate of 28% (2008: 28.5%, 2007: 30%) 1,277 1,452 1,876
Adjustment for prior years (233) (171) (17)
Differing overseas tax rates (27) 175 (82)
Non-taxable gains and income (including amounts offset by unrecognised tax losses) (119) (851) (145)
Share-based payments (38) 201 71
Deferred tax assets not recognised/(previously not recognised) 27 (504) (159)
Change in tax rates (12) (1) 24
Other non-allowable expenses 172 148 131
Overall tax charge 1,047 449 1,699
Effective tax rate 23% 9% 27%
The effective tax rate for 2009, based on profit before tax on continuing operations was 23.0% (2008: 8.8%). The effective tax rate differs from the UK
tax rate of 28% (2008: 28.5%) because of non-taxable gains and income, different tax rates applied to taxable profits and losses outside the UK,
disallowed expenditure and adjustments in respect of prior years. The low effective tax rate of 8.8% on continuing operations in 2008 mainly resulted
from the Lehman Brothers North American business acquisition.