EasyJet 2012 Annual Report Download - page 80

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Accounts & other information
Notes to the accounts
continued
5 Tax charge
Tax on profit on ordinary activities
2012
£ million
2011
£ million
Current tax
United Kingdom corporation tax 37 5
Foreign tax 11 9
Prior year adjustments – (30)
Total current tax charge / (credit) 48 (16)
Deferred tax
Temporary differences relating to property, plant and equipment 42 54
Other temporary differences (8) (5)
Prior year adjustments (2) 7
Change in tax rate (18) (17)
Total deferred tax charge 14 39
62 23
Effective tax rate 20% 9%
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:
2012
£ million
2011
£ million
Profit on ordinary activities before tax 317 248
Tax charge at 25% (2011: 27%) 79 67
Attributable to rates other than standard UK rate – (1)
Expenses / (income) not deductible / (chargeable) for tax purposes 7 (4)
Share-based payments 1 1
Adjustments in respect of prior years – current tax – (30)
Adjustments in respect of prior years – deferred tax (2) 7
Utilisation of previously unrecognised losses (5) –
Change in tax rate (18) (17)
62 23
In the year ended 30 September 2011 the adjustments in respect of prior year 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 2012 amounted to £29 million (2011: £9 million), of which £12 million relates to years prior to 2012
which remain open with the relevant tax authorities.
During the year ended 30 September 2012, net cash tax paid amounted to £28 million (2011: £2 million).
easyJet plc
Annual report and accounts 2012
78