Holiday Inn 2009 Annual Report Download - page 81

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GROUP FINANCIAL
STATEMENTS
Notes to the Group financial statements 79
7 Tax continued
TotalaBefore exceptional itemsb
2009 2008 2009 2008
%%%%
Reconciliation of tax (credit)/charge, including gain on disposal of assets
UK corporation tax at standard rate 28.0 28.5 28.0 28.5
Non-deductible expenditure and non-taxable income (36.5) 8.7 7.4 6.1
Net effect of different rates of tax in overseas businesses (43.0) 10.1 8.7 7.1
Effect of changes in tax rates (0.3) (0.2) 0.1 (0.1)
Benefit of tax reliefs on which no deferred tax previously recognised 7.2 (1.7) (1.5) (1.2)
Effect of adjustments to estimated recoverable deferred tax assets 5.9 (1.1) (1.2) (0.8)
Adjustment to tax charge in respect of prior periods 185.5 (23.5) (37.6) (16.6)
Other (3.8) (0.8) 0.8 (0.6)
Exceptional items and gain on disposal of assets 298.3 (2.9) ––
441.3 17.1 4.7 22.4
a Calculated in relation to total losses/profits including exceptional items.
b Calculated in relation to profits excluding exceptional items.
Tax paid
Total net tax paid during the year of $2m (2008 $2m) comprises $1m paid (2008 $1m received) in respect of operating activities and $1m
paid (2008 $3m) 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 Chief Financial Officer 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
2009 2008
cents per cents per 2009 2008
share share $m $m
Paid during the year:
Final (declared for previous year) 29.2 29.2 83 86
Interim 12.2 12.2 35 32
41.4 41.4 118 118
Proposed (not recognised as a liability at 31 December):
Final 29.2 29.2 84 83
The final dividend of 18.7p (29.2¢ converted at the closing exchange rate on 12 February 2010) is proposed for approval at the
Annual General Meeting on 28 May 2010 and is payable on the shares in issue at 26 March 2010.