Holiday Inn 2007 Annual Report Download - page 66
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64 IHG Annual Report and Financial Statements 2007
Notes to the Group financial statements continued
7 TAX
2007 2006
£m £m
Income tax
UK corporation tax at 30% (2006 30%):
Current period 23 16
Benefit of tax reliefs on which no deferred tax previously recognised (1) (10)
Adjustments in respect of prior periods (16) (4)
62
Foreign tax:
Current period 100 72
Benefit of tax reliefs on which no deferred tax previously recognised (8) (1)
Adjustments in respect of prior periods (50) (94)
42 (23)
Total current tax 48 (21)
Deferred tax:
Origination and reversal of temporary differences (34) 27
Changes in tax rates (2) (4)
Adjustments to estimated recoverable deferred tax assets 3(13)
Adjustments in respect of prior periods 4(24)
Total deferred tax (29) (14)
Total income tax charge/(credit) on profit for the year 19 (35)
Further analysed as tax relating to:
Profit before exceptional items 45 53
Exceptional items (note 5):
Exceptional operating items –6
Exceptional tax credit* (30) (100)
Gain on disposal of assets 46
19 (35)
The total tax charge/(credit) can be further analysed as relating to:
Profit on continuing operations 12 (53)
Profit on discontinued operations 312
Gain on disposal of assets 46
19 (35)
* Represents the release of provisions which are exceptional by reason of their size or nature relating to tax matters which have been settled or in respect
of which the relevant statutory limitation period has expired, together with, in 2006, a credit in respect of previously unrecognised losses.
2007 2006
%%
Reconciliation of tax charge/(credit) on total profit, including gain on disposal of assets
UK corporation tax at standard rate 30.0 30.0
Permanent differences 5.6 3.7
Net effect of different rates of tax in overseas businesses 1.8 3.5
Effect of changes in tax rates (1.0) (1.0)
Benefit of tax reliefs on which no deferred tax previously recognised (3.3) (3.0)
Effect of adjustments to estimated recoverable deferred tax assets 1.3 (0.2)
Adjustment to tax charge in respect of prior periods (11.0) (6.9)
Other 0.4 0.4
Exceptional items and gain on disposal of assets (16.3) (36.1)
7.5 (9.6)
Tax paid
Total tax paid during the year of £69m (2006 £49m) comprises £37m (2006 £43m) in respect of operating activities and £32m (2006 £6m)
in respect of investing activities.