BT 2009 Annual Report Download - page 101

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ADDITIONAL INFORMATION FINANCIAL STATEMENTS REPORT OF THE DIRECTORS BUSINESS AND FINANCIAL REVIEWS OVERVIEW
FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
99BT GROUP PLC ANNUAL REPORT & FORM 20-F
FINANCIAL STATEMENTS
7. Taxation
Analysis of taxation (credit) expense for the year
2009 2008 2007
£m £m £m
United Kingdom
Corporation tax at 28% (2008 and 2007: 30%) – 214 256
Adjustments in respect of prior periods (50) 18 (1,096)
Non UK taxation
Current 48 42 25
Adjustments in respect of prior periods (10) (88) 38
Total current tax (credit) expense (12) 186 (777)
Deferred tax
Origination and reversal of temporary differences (77) 78 367
Adjustments in respect of prior periods 36 (26) 42
Total deferred tax (credit) expense (41) 52 409
Total taxation (credit) expense in the income statement (53) 238 (368)
Factors affecting taxation (credit) expense
The taxation (credit) expense on the (loss) profit for the year differs from the amount computed by applying the corporation tax rate to the
(loss) profit before taxation as a result of the following factors:
2009 2008 2007
£m % £m % £m %
(Loss) profit before taxation (134) 1,976 2,484
Notional taxation (credit) expense at UK rate of 28%
(2008 and 2007: 30%) (38) 28.0 592 30.0 745 30.0
Effects of:
Non deductible depreciation and amortisation 27 (20.0) 23 1.1 4 0.1
Non (taxable) deductible non UK (profits) losses (24) 17.9 (7) (0.3) 9 0.4
(Lower) higher taxes on non UK profits (9) 6.7 7 0.3 11 0.4
Higher (lower) taxes on gain on disposal of non current
investments and group undertakings 4 (2.9) – – (2) (0.1)
Other deferred tax assets not recognised 5 (3.7) (13) (0.6) – –
Associates and joint ventures (21) 15.7 (2) (0.1) (5) (0.2)
Adjustments in respect of prior periods (24) 17.9 (56) (2.8) (78) (3.2)
Tax credit in respect of settlement of open tax years – – (40) (2.0) (938) (37.8)
Re-measurements of deferred tax balances at 28% – – (154) (7.8) – –
Other 27 (20.0) (112) (5.8) (114) (4.5)
Total taxation (credit) expense and effective tax rate (53) 39.6 238 12.0 (368) (14.9)
Specific items 43 343 979
Total taxation (credit) expense before specific items
and effective rate on profit before specific items (10) (4.2) 581 23.2 611 24.5