Ryanair 2004 Annual Report Download - page 53

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24 INTEREST PAYABLE AND SIMILAR CHARGES
2004 2003
000 000
Interest payable on bank loans wholly repayable after five years 47,564 30,886
25 TAXATION
2004 2003
The components of the corporation tax expense were as follows: 000 000
Current corporation tax 2,032 6,636
Deferred tax charge (see note 13) 19,837 18,516
21,869 25,152
All of thedeferred taxchargeabove arose fromthe originationand reversal of timingdifferences.
The following table reconciles the statutory rate of 2004 2003
Irish corporation tax to the group’s effective current corporation tax rate: % %
Statutory rate of Irish corporation tax 12.5 15.1
Adjustments for earnings taxed at higher rates 1.0 1.1
Adjustments for earnings taxed at lower rates (including those qualifying for relief under section 448,TCA 1997) (3.9) (6.6)
Capital allowances in excess of depreciation (7.5) (6.4)
Other timing differences (1.0) (0.7)
Current effective rate of taxation 1.1 2.5
Provision of deferred tax on timing differences 8.5 7.0
Total effective rate of taxation 9.6 9.5
At March 31, 2004 and 2003 the group had no unused net operating losses carried forward. In fiscal 2005 the Irish headline
corporation tax rate remains at 12.5%. The majority of corporation and deferred tax recorded in each of fiscal 2004 and 2003
relates to domestic taxcharges.
Ryanair.com Limited is engaged in international data processing and reservations services. In these circumstances, Ryanair.com
Limited is entitled to claim effective 10% corporation tax rate on profits derived from qualifying activities in accordance with
Section448 of the Taxes Consolidation Act, 1997. Thislegislationprovides forthe continuation of the10% effective corporation tax
rate until 2010.
2004 2003
The principal components of deferred tax liabilities were as follows 000 000
Aircraft including maintenance provisions, property, fixtures and fittings 87,670 67,833
At March 31, 2004 and 2003, the group had fully provided for deferred tax liabilities. As explained above, pr ofits from certain
qualifying activities are levied at an effective 10% rate in Ireland until 2010. Nodeferred taxhasbeenprovidedontheunremitted
earnings of overseas subsidiaries because there is nointention to remitthese to Ireland.
(Continued)
Notes 53
A N N U A L R E P O RT & F I N A N C I A L S T A T E M E N T S 2 0 0 4