EasyJet 2010 Annual Report Download - page 71

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Overview Business review Governance Accounts Other information
easyJet plc
Annual report and accounts 2010
69
Reconciliation of the total tax charge / (credit)
The tax for the year is lower than the standard rate of corporation tax in the UK as set out below:
2010
£ million
2009
£ million
Profit on ordinary activities before tax 154.0 54.7
Tax charge at 28% 43.1 15.3
Attributable to rates other than standard UK rate (1.7) (1.3)
Income not chargeable for tax purposes (6.0) (2.5)
Expenses not deductible for tax purposes 2.1 2.5
Share-based payments 0.8 1.2
Adjustments in respect of prior years – current tax (18.4) (27.4)
Adjustments in respect of prior years – deferred tax 15.2 (4.3)
Change in tax rate (2.4) –
32.7 (16.5)
The prior year adjustments in 2010 reflect the resolution and reassessment of various tax matters following discussions with the UK tax
authorities. This has resulted in the net credits to prior year current tax and debits to prior year deferred tax referred to above. During
2009, agreement was reached with the UK tax authorities on certain tax matters, resulting in the release to the income statement
of £30.7 million relating to current tax liabilities provided for in prior years.
Current tax liabilities at 30 September 2010 amounted to £27.5 million (2009: £57.7 million), of which £25.6 million relates to years prior
to 2010 which remain open with the relevant tax authorities. As in prior years a significant portion of this balance may not be settled in
cash but accounted for as a movement in the deferred tax liability. During the year ended 30 September 2010, cash tax paid amounted
to £14.1 million (2009: £9.4 million), which principally comprises foreign taxes paid.
Tax on items recognised directly in other comprehensive income or shareholders’ equity
2010
£ million
2009
£ million
(Charge) / credit to other comprehensive income
Deferred tax (charge) / credit on fair value movements of cash flow hedges (22.5) 19.9
(Charge) / credit to shareholders’ equity
Current tax credit on share-based payments 2.2 0.4
Deferred tax (charge) / credit on share-based payments (2.7) 1.1
(0.5) 1.5