Holiday Inn 2015 Annual Report Download - page 112

Notes to the Group Financial Statements continued
7. Tax continued
Deferred gains on loan notes includes $55m (2014: $55m) which is expected to fall due for payment in 2025 (2014: 2016).
The deferred tax asset recognised in respect of losses of $67m (2014: $154m) includes $nil (2014: $50m) in respect of capital losses available to
be utilised against the realisation of capital gains which are recognised as a deferred tax liability and $67m (2014: $104m) in respect of revenue
tax losses. Deferred tax assets of $nil (2014: $20m) are recognised in relation to legal entities which suffered a tax loss in the current or
preceding period. Deferred gains on investments represent taxable gains which would crystallise upon a sale of a related joint venture,
associate or other equity investment.
The Group has unrecognised deferred tax assets as follows:
2015
$m
2014
$m
Revenue losses 47 126
Capital losses 114 130
Total lossesa161 256
Employee benefits 55
Otherb28 58
Total 194 319
a These may be carried forward indefinitely other than $9m which expires after one year, $1m which expires after five years, $7m which expires after six years, $3m which expires after seven
years and $1m which expires after eight years (2014: $11m which expires after two years, $1m which expires after six years, $8m which expires after seven years, $1m which expires after
eight years and $2m which expires after nine years).
b Primarily relates to provisions, accruals, amortisation and share-based payments.
These assets have not been recognised as the Group does not currently anticipate being able to offset these against future profits or gains in
order to realise any economic benefit in the foreseeable future. However, future benefits may arise as a result of resolving tax uncertainties,
or as a consequence of case law and legislative developments which make the value of the assets more certain.
The Group has provided deferred tax in relation to temporary differences associated with post-acquisition undistributed earnings of subsidiaries
only to the extent that it is either probable that it will reverse in the foreseeable future or where the Group cannot control the timing of the
reversal. The remaining unprovided liability that would arise on the reversal of these temporary differences is not expected to exceed $10m
(2014: $10m).
Tax risks, policies and governance
Information concerning the Group’s tax governance can be found in the Taxation section of the Strategic Report on pages 47 to 48.
8. Dividends
2015
cents per
share
2014
cents per
share
2013
cents per
share
2015
$m
2014
$m
2013
$m
Paid during the year:
Final (declared for previous year) 52.0 47.0 43.0 125 122 115
Interim 27.5 25.0 23.0 63 57 63
Special (note 27) –293.0 133.0 –763 355
79.5 365.0 199.0 188 942 533
Proposed (not recognised as a liability at 31 December):
Final 57.5 52.0 47.0 135 122 121
The final dividend of 40.3p (57.5¢ converted at the closing exchange rate on 19 February 2016) is proposed for approval at the Annual General
Meeting (AGM) on 6 May 2016 and is payable on the shares in issue at 1 April 2016.
In February 2016, the Board proposed a $1.5bn return of funds to shareholders by way of a special dividend of 632.9¢ per ordinary share, together
with a share consolidation.
110 IHG Annual Report and Form 20-F 2015