EasyJet 2011 Annual Report Download - page 80

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Notes to the accounts
Continued
5 Tax charge
Tax on profit on ordinary activities
2011
£ million
2010
£ million
Current tax
United Kingdom corporation tax 5 –
Foreign tax 9 5
Prior year adjustments (30) (18)
Total current tax credit (16) (13)
Deferred tax
Temporary differences relating to property, plant and equipment 54 15
Other temporary differences (5) 19
Prior year adjustments 7 15
Change in tax rate (17) (3)
Total deferred tax charge 39 46
23 33
Effective tax rate 9% 21%
Reconciliation of the total tax charge
The tax for the year is lower than the standard rate of corporation tax in the UK as set out below:
2011
£ million
2010
£ million
Profit on ordinary activities before tax 248 154
Tax charge at 27% (2010: 28%) 67 43
Attributable to rates other than standard UK rate (1) (2)
Income not chargeable for tax purposes (4) (6)
Expenses not deductible for tax purposes – 3
Share-based payments 1 1
Adjustments in respect of prior years – current tax (30) (18)
Adjustments in respect of prior years – deferred tax 7 15
Change in tax rate (17) (3)
23 33
The prior year adjustments in 2011 and 2010 reflect the resolution and reassessment of various tax matters
following discussions with the UK and European tax authorities. This has resulted in the net credits to the prior
year current tax and debits to prior year deferred tax referred to above.
Current tax liabilities at 30 September 2011 amounted to £9 million (2010: £28 million), of which substantially all
relates to years prior to 2011 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 2011, net cash tax paid amounted to £2 million (2010: £14 million), which
principally comprises foreign taxes paid.
78
easyJet plc
Annual report
and accounts 2011