Experian 2011 Annual Report Download - page 120

Download and view the complete annual report

Please find page 120 of the 2011 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 164

  • 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
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164

118 Experian Annual Report 2011
Notes to the Group nancial statements continued
15. Tax charge/(credit) in the Group income statement
(a) Analysis of Group tax charge/(credit) 2011
US$m
2010
(Re-presented)
(Note 3)
US$m
Current tax:
Tax on income for the year 100 82
Adjustments in respect of prior years (35) 11
Total current tax charge 65 93
Deferred tax:
Origination and reversal of temporary differences 51 (98)
Adjustments in respect of prior years 13 (4)
Total deferred tax charge/(credit) 64 (102)
Group tax charge/(credit) 129 (9)
The Group tax charge/(credit) comprises:
UK tax (23) (103)
Non-UK tax 152 94
Group tax charge/(credit) 129 (9)
(b) Tax reconciliations
(i) Reconciliation of the Group tax charge/(credit) 2011
US$m
2010
(Re-presented)
(Note 3)
US$m
Prot before tax 679 600
Prot before tax multiplied by the standard rate of UK corporation tax of 28% (2010: 28%) 190 168
Effects of:
Adjustments in respect of prior years (22) 7
Income not taxable (23) (30)
Expenses not deductible 74 38
Adjustment in respect of previously unrecognised tax losses (58) (105)
Reduction in future rate of UK corporation tax 10 -
Effect of different tax rates in non-UK businesses (42) (87)
Group tax charge/(credit) 129 (9)
The effective rate of tax for the year ended 31 March 2011 is 19.0%, based on the prot before tax of US$679m and the tax charge of US$129m.
In the year ended 31 March 2010, the Group reported a tax credit of US$9m, as a result of the benet of tax credits of US$129m, giving a small
negative effective rate of tax based on prot before tax of US$600m. The effective tax rate for both years is lower than the standard rate of
corporation tax in the UK of 28% and the differences are explained above.
(ii) Reconciliation of the Group tax charge/(credit) to the Benchmark tax charge
2011
US$m
2010
(Re-presented)
(Note 3)
US$m
Group tax charge/(credit) 129 (9)
Add: one-off tax credit 37 105
Add: tax relief on exceptional items 4 33
Add: tax relief on total adjustments to Benchmark PBT 50 33
Tax on Benchmark PBT 220 162
The effective rate of tax based on Benchmark PBT of US$973m (2010: US$854m) and the associated tax charge of US$220m (2010: US$162m),
excluding the effect of a one-off tax credit of US$37m (2010: US$105m), is 22.6% (2010: 19.0%). The one-off current tax credit of US$37m arose in
the year ended 31 March 2011 on the utilisation of earlier tax losses and is excluded from the calculation of this rate in the year ended 31 March
2011 in view of its size and non-recurring nature. The one-off credit in the year ended 31 March 2010 was a deferred tax credit and was excluded
from the calculation of the effective rate for that year in view of its size and non-recurring nature. A further corporation tax credit of US$24m
arose in the year ended 31 March 2010 following resolution of historic positions and the tax credit of US$9m in the Group income statement and
the tax charge on Benchmark PBT of US$162m are both stated after this credit.