Vodafone 2014 Annual Report Download - page 122

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6. Taxation (continued)
Tax on discontinued operations
201420132012
£m £m £m
Tax charge on prot from ordinary activities of discontinued operations 1,709 1,750 1,289
Tax charge relating to the gain or loss of discontinuance – – –
Total tax charge on discontinued operations 1,709 1,750 1,289
Tax charged/(credited) directly to other comprehensive income
2014
Restated
2013
Restated
2012
£m £m £m
Current tax charge/(credit) –4(4)
Deferred tax charge/(credit) 23 (37) (116)
Total tax charged/(credited) directly to other comprehensive income 23 (33) (120)
Tax charged/(credited) directly to equity
2014
Restated
2013
Restated
2012
£m £m £m
Current tax charge/(credit) 12 (17) (1)
Deferred tax credit –(1) (1)
Total tax charged/(credited) directly to equity 12 (18) (2)
Factors affecting the tax expense for the year
The table below explains the differences between the expected tax expense at the UK statutory tax rate of 23% (2013: 24% and 2012: 26%), and the
Group’s total tax expense for each year.
2014
Restated
2013
Restated
2012
£m £m £m
Continuing (loss)/prot before tax as shown in the consolidated income statement (5,270) (3,483) 4,144
Expected income tax (income)/expense at UK statutory tax rate (1,212) (836) 1,077
Effect of different statutory tax rates of overseas jurisdictions (328) (9) 456
Impairment losses with no tax effect 1,958 2,664 1,053
Disposal of Group investments1211 (10) (718)
Effect of taxation of associates and joint ventures, reported within operating prot 61 129 78
Recognition of deferred tax assets in Luxembourg and Germany2(19,318) – –
Tax charge on rationalisation and re-organisation of non-US assets prior to VZW disposal31,365 – –
Deferred tax impact of previously unrecognised temporary differences including losses (164) (625) (634)
Current tax impact of previously unrecognised temporary differences including losses –(74) –
Effect of unrecognised temporary differences 215 (184) (285)
Adjustments in respect of prior years (43) (234) (110)
Gain on acquisition of CWW with no tax effect –(164) –
Effect of secondary and irrecoverable taxes 37 94 159
Deferred tax on overseas earnings 4(4) –
Effect of current year changes in statutory tax rates 158 (2) (3)
Expenses not deductible for tax purposes and other items 210 104 199
Tax on income derived from discontinued operations 418 – –
Exclude taxation of associates (154) (373) (567)
Income tax (income)/expense (16,582) 476 705
Notes:
1 2014 relates to deemed disposal of Italy. 2012 relates to the disposal of SFR and Polkomtel.
2 See commentary regarding deferred tax asset recognition on page 122.
3 Includes the US tax charge of £2,210 million on the rationalisation and reorganisation of non-US assets prior to the disposal of our interest in Verizon Wireless.
Notes to the consolidated nancial statements (continued)
Vodafone Group Plc
Annual Report 2014120