Vodafone 2006 Annual Report Download - page 89

Vodafone Group Plc Annual Report 2006 87
At 31 March 2006, the gross amount and expiry dates of losses available for carry forward are as follows:
Expiring within
5 years Unlimited Total
£m £m £m
Losses for which a deferred tax asset is recognised 1 1,451 1,452
Losses for which no deferred tax is recognised 172 31,331 31,503
173 32,782 32,955
Included above are losses amounting to £1,939 million (2005: £1,870 million) in respect of UK subsidiaries which are only available for offset against future capital gains and since it
is uncertain whether these losses will be utilised, no deferred tax asset has been recognised.
The losses above also include £27,545 million (2005 £20,898 million) that have arisen in overseas holding companies as a result of revaluations of those companies’ investments
for local GAAP purposes. Since it is uncertain whether these losses will be utilised no deferred tax asset has been recognised.
In addition to the losses described above, the Group has potential tax losses of £35,250 million (2005: £34,674 million) in respect of a write down in the value of investments in
Germany. These losses have to date been denied by the German tax authorities. Vodafone is in continuing discussions with them regarding the availability of the losses, however the
outcome of these discussions and the timing of the resolution are not yet known. The Group has not recognised the availability of the losses, nor the income statement benefit
arising from them, due to this uncertainty. If upon resolution a benefit is recognised, it may impact both the amount of current income taxes provided since the date of initial
deduction and the amount of the benefit from tax losses the Group will recognise. The recognition of these benefits could affect the overall profitability of the Group in future
periods.
The Group holds provisions in respect of deferred taxation that would arise if temporary differences on investments in subsidiaries, associates and interests in joint ventures were to
be realised after the balance sheet date. No deferred tax liability has been recognised in respect of a further £23,038 million (2005: £15,060 million) of unremitted earnings of
subsidiaries, associates and joint ventures because the Group is in a position to control the timing of the reversal of the temporary difference and it is probable that such differences
will not reverse in the foreseeable future.
7. Equity dividends 2006 2005
£m £m
Declared and paid during the financial year:
Final dividend for the year ended 31 March 2005: 2.16 pence per share
(2004: 1.078 pence per share) 1,386 728
Interim dividend for the year ended 31 March 2006: 2.20 pence per share
(2005: 1.91 pence per share) 1,367 1,263
2,753 1,991
Proposed or declared after the balance sheet date and not recognised as a liability:
Final dividend for the year ended 31 March 2006: 3.87 pence per share
(2005: 2.16 pence per share) 2,327 1,386
Financials