Vodafone 2003 Annual Report Download - page 88

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Vodafone Group Plc Annual Report & Accounts and Form 20-F 2003
86
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Continued
8. Tax on loss on ordinary activities
2003 2002 2001
£m £m £m
United Kingdom
Corporation tax charge at 30% 195 187 191
Overseas corporation tax
Current tax:
Current year 1,971 857 957
Prior year 9(322) (48)
1,980 535 909
Total current tax 2,175 722 1,100
Deferred tax – origination of and reversal of timing differences 818 1,489 381
Tax on profit on ordinary activities, before exceptional items 2,993 2,211 1,481
Tax on exceptional items (37) (71) (55)
Total tax charge on ordinary activities 2,956 2,140 1,426
Parent and subsidiary undertakings 2,624 1,925 1,195
Share of joint ventures 17 (23) (12)
Share of associated undertakings 315 238 243
2,956 2,140 1,426
The effective rate of taxation for the year ended 31 March 2003 is (47.6)% (2002: (15.8)%, 2001: (17.6)%). This rate includes the impact of goodwill
amortisation and exceptional items, which may not be deductible for tax purposes. The tax rate has benefited from the reorganisation of the Group’s Italian
operations and a one-off benefit in Germany arising from the reorganisation of the German group of companies following the acquisition of the remaining
minorities in the year ended 31 March 2003. In the prior year, the effective tax rate benefited from a one-off tax credit received in Germany arising from the
distribution of earnings and also the Visco Law incentive scheme in Italy. The Visco Law has subseque ntly been replaced by a less favourable tax regime.
The tax recoverable on exceptional items of £37m (2002: £71m, 2001: £55m) is mainly in respect of reorganisation costs.