HSBC 2002 Annual Report Download - page 214

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
212
2002 2001* 2000*
US$m US$m US$m
Group tax charge........................................................................... 2,523 1,975 2,417
Joint ventures tax charge............................................................... (6) (13) (7)
Associates tax charge.................................................................... 17 26 (1)
Total charge for taxation............................................................... 2,534 1,988 2,409
* The figures for 2001 and 2000 have been restated to reflect the adoption of UK Financial Reporting Standard 19 “Deferred Tax”
details of which are set out in Note 1 on the Financial Statements on pages 195 to 197.
HSBC Holdings and its subsidiary undertakings in the United Kingdom provide for UK corporation tax at 30%
(2001: 30%; 2000: 30%). Overseas tax includes Hong Kong profits tax of US$408 million (2001: US$450 million;
2000: US$478 million). Subsidiary undertakings in Hong Kong provide for Hong Kong profits tax at the rate of 16%
(2001: 16%; 2000: 16%) on the profits for the year assessable in Hong Kong. Other overseas subsidiary
undertakings and overseas branches provide for taxation at the appropriate rates in the countries in which they
operate.
Analysis of overall tax charge:
2002 2001* 2000*
US$m US$m US$m
Taxation at UK corporate tax rate of 30% (2001: 30%;
2000: 30%) ............................................................................... 2,895 2,400 2,932
Impact of differently taxed overseas profits in principal locations (472) (616) (498)
Tax free gains................................................................................ (19) (102) (15)
Argentine losses unrelieved .......................................................... 87 336 –
Goodwill amortisation .................................................................. 261 263 172
Prior period adjustments ............................................................... (90 ) (167) (48)
Other items.................................................................................... (128) (126) (134)
Overall tax charge ........................................................................ 2,534 1,988 2,409
Timing differences subject to deferred tax:
Accelerated capital allowances ..................................................... 23 (84) 22
Timing differences on lease income ............................................. (90) (97) (48)
Provision for bad and doubtful debts ............................................ (29) 46 (60)
Relief for losses brought forward.................................................. (125) 85 18
Provision for Princeton Note settlement ....................................... (221) 221 –
Other short term timing differences .............................................. (180) (160) (25)
Deferred tax (charge)/credit.......................................................... (622) 11 (93)
Current tax charge......................................................................... 1,912 1,999 2,316
* The figures for 2001 and 2000 have been restated to reflect the adoption of UK Financial Reporting Standard 19 “Deferred Tax”
details of which are set out in Note 1 on the Financial Statements on pages 195 to 197.