Holiday Inn 2012 Annual Report Download - page 105

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OVERVIEW BUSINESS REVIEW GOVERNANCE
GROUP FINANCIAL
STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS OTHER INFORMATION
Notes to the Group Financial Statements 103
7. Tax continued
Before
Total
a exceptional itemsb
2012 2011 2012 2011
% % % %
Reconciliation of tax charge, including gain on disposal of assets
UK corporation tax at standard rate 24.5 26.5 24.5 26.5
Non-deductible expenditure and non-taxable income 2.0 1.9 1.0 2.6
Net effect of different rates of tax in overseas businesses 9.7 8.9 9.7 9.8
Effect of changes in tax rates (0.3) (0.5) (0.1) (0.4)
Benefit of tax reliefs on which no deferred tax previously recognised (5.5) (3.0) (5.5) (3.2)
Effect of adjustments to estimated recoverable deferred tax assets (19.0) (2.3) (0.2) (0.3)
Adjustment to tax charge in respect of prior periods (9.7) (18.9) (2.4) (12.1)
Other 0.3 0.9 0.4 1.3
2.0 13.5 27.4 24.2
a Calculated in relation to total profits including exceptional items.
b Calculated in relation to profits excluding exceptional items.
Tax paid
Total net tax paid during the year of $122m (2011 $90m) comprises $119m (2011 $89m) paid in respect of operating activities and $3m
(2011 $1m) paid in respect of investing activities.
Tax paid represents an effective rate of 22% (2011 17%) on total profits and is lower than the effective income statement tax rate of 27%
primarily due to the impact of deferred taxes (including the realisation of assets such as tax losses), the receipt of refunds in respect of
prior years and provisions for tax for which no payment of tax has currently been made.
UK corporation tax of $6m was paid in the year in settlement of prior period liabilities. Corporation tax liabilities are not expected to arise
in respect of 2012 or for a number of years thereafter due to expenses and associated tax losses attributable principally to employment
matters, in particular additional shortfall contributions to the UK pension plan (see note 25).
Tax risks, policies and governance
Information concerning the Group’s tax governance can be found in the Taxation section of the Business Review on page 29.
8. Dividends paid and proposed
2012 2011
cents per cents per 2012 2011
share share $m $m
Paid during the year:
Final (declared for previous year) 39.0 35.2 113 102
Interim 21.0 16.0 61 46
Special (note 28) 172.0 – 505 –
232.0 51.2 679 148
Proposed (not recognised as a liability at 31 December):
Final 43.0 39.0 115 113
The final dividend of 27.7p (43.0¢ converted at the closing exchange rate on 15 February 2013) is proposed for approval at the Annual
General Meeting (AGM) on 24 May 2013 and is payable on the shares in issue at 22 March 2013.