Carphone Warehouse 2008 Annual Report Download - page 67

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8 Taxation (continued)
The major deferred tax assets and liabilities recognised by the Group and movements thereon during the period are as follows:
Timing
differences on
Acquisition Share-based capitalised Other timing
intangibles payments costs Tax losses differences Total
£m £m £m £m £m £m
At 1 April 2007 as previously stated (1.2) 26.8 2.2 16.4 7.4 51.6
Adjustment to deferred tax on acquisition (see note 14) ––––10.3 10.3
At 1 April 2007 (restated) (1.2) 26.8 2.2 16.4 17.7 61.9
Credit (charge) to income statement 1.2 0.2 (9.0) 29.5 (19.0) 2.9
Impact of change in UK tax rate – (0.7) 0.5 (2.2) (0.2) (2.6)
Credit (charge) to income statement 1.2 (0.5) (8.5) 27.3 (19.2) 0.3
(Charge) credit to reserves – (3.0) ––1.3 (1.7)
Exchange differences –––0.5 – 0.5
Acquisition of subsidiaries (0.1) ––––(0.1)
At 29 March 2008 (0.1) 23.3 (6.3) 44.2 (0.2) 60.9
No deferred tax assets and liabilities have been offset in either period, except where there is a legal right to do so in the relevant jurisdictions.
From 1 April 2008, the UK statutory rate of corporation tax reduces from 30% to 28%. The impact of this change on the value of deferred tax assets has
been recognised at 29 March 2008.
At 29 March 2008, the Group had unused tax losses of £282.7m (2007 – £193.7m) available for offset against future taxable profits. A deferred tax asset
of £44.2m (2007 – £16.4m) has been recognised in respect of £141.9m (2007 – £56.8m) of such losses, based on expectations of recovery in the
foreseeable future.
No deferred tax asset has been recognised in respect of the remaining tax losses of £140.8m (2007 – £136.9m) as there is insufficient evidence that
there will be suitable taxable profits against which these losses can be recovered. Included within the Group’s unrecognised tax losses are amounts of
£7.6m (2007 – £12.0m) that will expire between 2014 and 2018 and £7.9m (2007– £14.0m) that will expire between 2008 and 2013. All other losses
may be carried forward indefinitely.
At 29 March 2008, the aggregate amount of temporary differences associated with the undistributed earnings of subsidiaries for which deferred tax
liabilities have not been recognised was £45.9m (2007 – £26.1m). No liability has been recognised in respect of these differences because the Group is
in a position to control the timing of their reversal and it is probable that they will not reverse in the foreseeable future.
As described in note 31, in May 2008 the Group announced that it proposes to sell 50% of the retail and distribution business to Best Buy Co., Inc.
This transaction may have a material impact on the recoverability of certain tax assets, the financial impact of which is currently uncertain.
9Equity dividends
2008 2007
£m £m
Final dividend for the period ended 1 April 2006 of 1.75p per ordinary share –15.3
Interim dividend for the period ended 31 March 2007 of 1.00p per ordinary share –8.8
Final dividend for the period ended 31 March 2007 of 2.25p per ordinary share 20.1 –
Interim dividend for the period ended 29 March 2008 of 1.25p per ordinary share 11.3 –
31.4 24.1
Proposed final dividend for the period ended 29 March 2008 of 3.00p per ordinary share 27.2
The proposed final dividend for the period ended 29 March 2008 is subject to shareholders’ approval at the Annual General Meeting and has not been
included as a liability in these financial statements.
The expected cost of the proposed final dividend for the period ended 29 March 2008 reflects the fact that the Group’s Employee Share Ownership Trust
has agreed to waive its rights to receive dividends (see note 24).
Financial Statements