Experian 2010 Annual Report Download - page 118

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Experian Annual Report 2010 Financial statements116
Notes to the Group nancial statements (continued)
12. Tax expense (continued)
2010
US$m
2009
US$m
(ii) Reconciliation of the tax expense in the Group income statement to the
Benchmark tax charge
Group tax expense 17 84
Add: one-off tax credit 105 20
Add: tax relief on exceptional items 33 25
Add: tax relief on other non-GAAP measures 29 53
Tax expense on share of prots of associates - 2
Tax on Benchmark PBT 184 184
The effective rate of tax based on Benchmark PBT of US$910m (2009: US$843m) and the associated tax charge of US$184m
(2009: US$184m), excluding the effect of a one-off tax credit of US$105m (2009: US$20m), is 20.2% (2009: 21.8%). The one-off
deferred tax credit in the year ended 31 March 2010 involves UK entities that are still part of the Group but is excluded from the
calculation of the effective rate of tax based on Benchmark PBT in view of the size and the non-recurring nature of this benet.
The one-off corporation tax credit in the year ended 31 March 2009 was excluded from the calculation of the effective rate of tax
based on Benchmark PBT as it related to arrangements involving entities no longer part of the Group. A further tax credit of
US$24m arose in the year ended 31 March 2010 following resolution of historic positions and the tax expense of US$17m in the
Group income statement and the tax on Benchmark PBT of US$184m are both stated after this credit.
(c) Factors that may affect future tax charges
In the foreseeable future, the Group’s tax charge will continue to be inuenced by the prole of prots earned in the different
countries in which the Group’s businesses operate and could be affected by changes in tax law.
(d) Tax recognised in other comprehensive income
Year ended 31 March 2010 Charge/
(credit)
before tax
US$m
Deferred tax
US$m
Charge/
(credit) after
tax
US$m
Fair value gains - available for sale nancial assets (7) 2(5)
Actuarial losses - dened benet pension plans 28 (8) 20
Currency translation differences (218) 9(209)
Reclassication of cumulative fair value losses - available for sale nancial assets (5) - (5)
Other comprehensive income (202) 3(199)
Year ended 31 March 2009 Charge
before tax
US$m
Deferred tax
US$m
Charge
after tax
US$m
Fair value losses - available for sale nancial assets 8 - 8
Actuarial losses - dened benet pension plans 202 (56) 146
Currency translation differences 428 - 428
Reclassication of cumulative exchange gain - divestments 3 - 3
Other comprehensive income 641 (56) 585
(e) Tax credit recognised in equity on transactions with owners
In the year ended 31 March 2010, tax relating to employee share incentive plans of US$12m (2009: US$4m) was recognised in
equity and reported as appropriate within transactions with owners. This amount comprised current tax of US$4m (2009: US$1m)
and deferred tax of US$8m (2009: US$3m).