Holiday Inn 2008 Annual Report Download - page 71

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Notes to the Group financial statements 69
7 Tax continued
2008 2007
%%
Reconciliation of tax charge on total profit, including gain on disposal of assets
UK corporation tax at standard rate 28.5 30.0
Non-deductible expenditure and non-taxable income 8.7 5.6
Net effect of different rates of tax in overseas businesses 10.1 1.8
Effect of changes in tax rates (0.2) (1.0)
Benefit of tax reliefs on which no deferred tax previously recognised (1.7) (3.3)
Effect of adjustments to estimated recoverable deferred tax assets (1.1) 1.3
Adjustment to tax charge in respect of prior periods (23.5) (11.0)
Other (0.8) 0.4
Exceptional items and gain on disposal of assets (2.9) (16.3)
17.1 7.5
Tax paid
Total net tax paid during the year of $2m (2007 $138m) comprises $1m received (2007 $74m paid) in respect of operating activities
and $3m paid (2007 $64m) in respect of investing activities.
Tax paid is lower than the current period income tax charge primarily due to the receipt of refunds in respect of prior years together
with provisions for tax for which no payment of tax has currently been made.
Tax risks, policies and governance
It is the Group’s objective to comply fully with its worldwide corporate income tax filing, payment and reporting obligations, whilst
managing its tax affairs within acceptable risk parameters in order to minimise its worldwide liabilities in the best interests of its
shareholders. The Group adopts a policy of open co-operation with tax authorities, with full disclosure of relevant issues.
The Group’s tax objectives and policies, and any changes thereto, are reviewed and approved by the Audit Committee. Regular tax reports
are made to the Finance Director in addition to an annual presentation to the Audit Committee covering the Group’s tax position, strategy
and major risks. Tax is also encompassed within the Group’s formal risk management procedures and any material tax disputes, litigation
or tax planning activities are subject to internal risk review and management approval procedures.
8 Dividends paid and proposed
2008 2007
cents per cents per 2008 2007
share share $m $m
Paid during the year:
Final (declared in previous year) 29.2 25.9 86 92
Interim 12.2 11.5 32 35
Special interim –400.0 –1,397
41.4 437.4 118 1,524
Proposed (not recognised as a liability at 31 December):
Final 29.2 29.2 83 86
The final dividend of 20.2p (29.2¢ converted at the closing exchange rate on 13 February 2009) is proposed for approval at the
Annual General Meeting on 29 May 2009 and is payable on the shares in issue at 27 March 2009.
GROUP FINANCIAL
STATEMENTS