Vodafone 2016 Annual Report Download - page 108

Vodafone Group Plc
Annual Report 2016
106
Notes to the consolidated nancial statements (continued)
6. Taxation (continued)
Tax on discontinued operations
2016 2015 2014
£m £m £m
Tax (credit)/charge on prot from ordinary activities of discontinued operations –(57) 1,709
Total tax (credit)/charge on discontinued operations –(57) 1,709
Tax (credited)/charged directly to other comprehensive income
2016 2015 2014
£m £m £m
Current tax (58) 2–
Deferred tax 218 (267) 23
Total tax charged/(credited) directly to other comprehensive income 160 (265) 23
Tax (credited)/charged directly to equity
2016 2015 2014
£m £m £m
Current tax (5) (4) 12
Deferred tax 2(3) –
Total tax (credited)/charged directly to equity (3) (7) 12
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 20% (2015: 21% and 2014: 23%), and the
Group’s total tax expense for each year.
2016 2015 2014
£m £m £m
Continuing (loss)/prot before tax as shown in the consolidated income statement (449) 1,095 (5,270)
Expected income tax (income)/expense at UK statutory tax rate (90) 230 (1,212)
Effect of different statutory tax rates of overseas jurisdictions 142 138 (328)
Impairment losses with no tax effect 90 –1,958
Disposal of Group investments – – 211
Effect of taxation of associates and joint ventures, reported within prot before tax 21 25 61
Derecognition/(recognition) of deferred tax assets for losses including Luxembourg and Germany11,001 (3,341) (19,318)
Deferred tax charge/(credit) following revaluation of investments in Luxembourg12,277 (2,127) –
Tax charge on rationalisation and re-organisation of non-US assets prior to VZW disposal2– – 1,365
Previously unrecognised temporary differences we expect to use in the future –(40) (164)
Previously unrecognised temporary differences we used in the year (6) – –
Current year temporary differences (including losses) that we currently do not expect to use 119 342 215
Adjustments in respect of prior year tax liabilities (32) (245) (43)
Restructuring and simplication of our Indian business (340) – –
Impact of tax credits and irrecoverable taxes (43) 66 37
Deferred tax on overseas earnings 14 38 4
Effect of current year changes in statutory tax rates on deferred tax balances 72 118 158
Expenses not deductible for tax purposes 248 148 210
Tax on income derived from discontinued operations – – 418
Exclude taxation of associates and joint ventures (104) (117) (154)
Income tax expense/(income) 3,369 (4,765) (16,582)
Notes:
1 See commentary regarding deferred tax asset recognition in Luxembourg and Germany on page 108.
2 Amounts for 2014 include 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.