Carphone Warehouse 2014 Annual Report Download - page 80

Carphone Warehouse Group plc
Annual Report 2014
78
FINANCIAL STATEMENTS
Notes to the Group financial statements continued
7 CORPORATION TAX continued
b) RECONCILIATION OF EFFECTIVE TAX RATE
The Group’s effective rate of tax before non-Headline items for the year ended  March  is %. The principal differences between the
total tax charge shown above and the amount calculated by applying the standard rate of UK corporation tax of % (: %) to profit (loss)
before taxation are as follows:
Restated
Non- Restated Non- Restated
Headline Headline Statutory Headline Headline Statutory
2014 2014 2014 2013 2013 2013
£m £m £m £m £m £m
Profit (loss) before taxation 127 (60) 67 53 (50) 3
Income tax expense at 23% (2013: 24%) 29 (14) 15 13 (12) 1
Adjustments in respect of prior years (9) (3) (12) 1 — 1
Items attracting no tax relief or liability 211 13 (13) 12 (1)
Movement in unprovided deferred tax (1) —(1) ———
Exceptional write-off of tax assets and liabilities — 1 1 ———
Change in tax rate 4(1) 3———
Total tax charge (credit) 25 (6) 19 1 — 1
Items attracting no tax relief or liability in the current year relate primarily to French operations, while items attracting no relief or liability in the
prior year relate primarily to results of joint ventures, the Group's share of which is reported within profit before taxation on a post-tax basis.
c) MOVEMENTS ON DEFERRED TAX BALANCES
Deferred tax balances recognised by the Group and movements thereon during the year are as follows:
CPW Recognised Recognised
Opening Europe directly in in profit or Closing
balance Acquisition equity loss balance
2014 £m £m £m £m £m
Temporary differences on capitalised costs —27 —(6) 21
Carried forward tax losses — 3 — — 3
Other temporary differences 114 2 (5) 12
Deferred tax assets (liabilities) 144 2(11) 36
Recognised
Opening in profit or Closing
balance loss balance
2013 £m £m £m
Temporary differences on capitalised costs — — —
Carried forward tax losses — — —
Other temporary differences 2 (1) 1
Deferred tax assets (liabilities) 2(1) 1
Deferred tax comprises the following balances:
2014 2013
£m £m
Deferred tax assets 54 1
Deferred tax liabilities (18) —
36 1
d) UNRECOGNISED DEFERRED TAX ASSETS AND LIABILITIES
At  March , the Group had approximately £m (: £m) of unused tax losses available for offset against future taxable profits.
Themajority of these losses are within CPW Europe, which were acquired through the CPW Europe Acquisition. Adeferred tax asset of
£m(: nil) has been recognised in respect of these unused losses. No deferred tax asset has been recognised in respect of the remaining
losses due to lack of certainty regarding the availability of future taxable profits. Such losses are only recognised in the financial statements
tothe extent that it is considered more likely than not that sufficient future taxable profits will be available for offset.
There were no temporary differences associated with undistributed earnings of subsidiaries for which deferred tax liabilities had not been
recognised at the end of either year.