Experian 2007 Annual Report Download - page 86

Download and view the complete annual report

Please find page 86 of the 2007 Experian annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 138

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138

Introduction | Business review | Governance | Financial statements
9. Tax expense
2007 2006
US$m US$m
(a) Analysis of expense recognised in the Group Income statement
Current taxation:
UK Corporation tax on income for the year (13) 45
Adjustments in respect of prior years (1) (4)
(14) 41
Non-UK taxation:
Overseas tax on income for the year 39 17
Adjustments in respect of prior years (6) (7)
Total current tax charge for the year 19 51
Deferred tax:
Origination and reversal of temporary differences 53 54
Adjustments in respect of prior years (4) (13)
Total deferred tax charge for the year 49 41
Total tax expense in the Group income statement 68 92
The tax expense comprises:
UK taxation (45) 36
Overseas taxation 113 56
Total tax expense in the Group income statement 68 92
(b) Tax reconciliation
Profit beforetax 394 550
Plus: tax on share of profits of associates 92
Adjusted profit beforetax 403 552
Adjusted profit beforetax multiplied by the standardrate of Corporation tax in the UK of 30% (2006: 30%) 121 166
Effects of:
Adjustments to tax charge in respect of prior years (11) (24)
Income not taxable (10) (11)
Expenses not deductible 39 45
Utilisation of previously unrecognised tax losses (16) (2)
Tax on share of profits of associates (9) (2)
Differences in tax rates (34) (54)
Other adjustments (9) (28)
Disposal of businesses (3) 2
Total tax expense in the Group income statement 68 92
The effective tax rate for the year of 17.3% (2006:16.7%), after adjusting for the net income from associates, is lower than the standard rate of
corporation tax in the United Kingdom (30%). The differences are explained above.
(c) The effective rate of tax on Benchmark PBT
The effective rate of tax based on Benchmark PBT of US$714m (2006: US$627m) is 22.4% (2006: 17.5%).
(d) Tax on items charged to equity
In addition to the amount charged to the Group income statement tax amounting to US$7m (2006:US$9m credit) has been charged directly to
equity, relating mainly to shareschemes, actuarial gains and losses on retirement benefit obligations and foreign exchange. This includes a credit of
US$11m (2006: US$nil) in respect of current taxation and a charge of US$18m (2006: credit of US$9m) in respect of deferred taxation.
(e) Factors that may affect future tax charges
In the foreseeable future, the Group’stax charge will continue to be influenced by the profile of profits earned in the different countries in which
the Group’sbusinesses operate and could be affected by changes in tax law.
Notes to the Group financial statements
for the year ended 31 March 2007
84 |Experian Annual Report2007