Vodafone 2011 Annual Report Download - page 96

94 Vodafone Group Plc Annual Report 2011
Notes to the consolidated nancial statements continued
6. Taxation
Income tax expense
2011 2010 2009
£m £m £m
United Kingdom corporation tax expense/(income):
Current year 141 40 (132)
Adjustments in respect of prior years (5) (4) (318)
136 36 (450)
Overseas current tax expense/(income):
Current year 2,152 2,377 2,111
Adjustments in respect of prior years (477) (1,718) (934)
1,675 659 1,177
Total current tax expense 1,811 695 727
Deferred tax on origination and reversal of temporary differences:
United Kingdom deferred tax (275) (166) 20
Overseas deferred tax 92 (473) 362
Total deferred tax (income)/expense (183) (639) 382
Total income tax expense 1,628 56 1,109
Tax (credited)/charged directly to other comprehensive income
2011 2010 2009
£m £m £m
Current tax (credit)/charge (14) (38) 133
Deferred tax (credit)/charge (117) 137 (72)
Total tax (credited)/charged directly to other comprehensive income (131) 99 61
Tax (credited)/charged directly to equity 2011 2010 2009
£m £m £m
Current tax (credit)/charge (5) (1) 1
Deferred tax (credit)/charge (19) (10) 8
Total tax (credited)/charged directly to equity (24) (11) 9
Factors affecting tax expense for the year
The table below explains the differences between the expected tax expense on continuing operations, at the UK statutory tax rate of 28%, and the Group’s
total tax expense for each year. Further discussion of the current year tax expenses can be found in the section titled “Operating results” on page 35.
Subsequently, the UK statutory tax rate reduced to 26%, effective from 1 April 2011 and the impact on the year end tax balances is included in ‘effect of
current year changes in statutory tax rates’ below.
2011 2010 2009
£m £m £m
Profit before tax as shown in the consolidated income statement 9,498 8,674 4,189
Expected income tax expense on profit at UK statutory tax rate 2,659 2,429 1,173
Effect of taxation of associates, reported within operating profit 145 160 118
Impairment losses with no tax effect 1,722 588 1,652
Impact of agreement of German write down losses(1) – (2,103) –
Expected income tax expense at UK statutory rate on profit from continuing operations,
before impairment losses and taxation of associates 4,526 1,074 2,943
Effect of different statutory tax rates of overseas jurisdictions(2) (141) 516 382
Effect of current year changes in statutory tax rates (29) 35 (31)
Deferred tax on overseas earnings 143 5 (26)
Assets revalued for tax purposes 121 – (155)
Effect of previously unrecognised temporary differences including losses(3) (2,122) (1,040) (881)
Adjustments in respect of prior years(1) (1,028) (387) (1,124)
Expenses not deductible for tax purposes and other items 677 425 423
Exclude taxation of associates (519) (572) (422)
Income tax expense 1,628 56 1,109
Notes:
(1) See “Taxation” on page 40.
(2) 2011 includes the impact of the disposal of China Mobile Limited.
(3) See note below regarding deferred tax asset recognition in Luxembourg.