Experian 2013 Annual Report Download - page 127
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Business review Business overview Governance Financial statements
16. Tax charge/(credit) in the Group income statement (continued)
(ii) Reconciliation of the Group tax charge/(credit) to the Benchmark tax charge
2013
US$m
2012
US$m
Group tax charge/(credit) 152 (35)
One-off tax credit 98 268
Tax attributable to exceptional items 11 (1)
Tax relief on other adjustments made to derive Benchmark PBT 41 42
Benchmark tax charge 302 274
Benchmark PBT 1,195 1,128
Benchmark tax rate 25.3% 24.3%
In the current and prior year, significant one-off tax credits have been excluded from the calculation of the Benchmark tax rate in view of their
size and nature. In the year ended 31 March 2013, the one-off tax credit of US$98m comprised a tax benefit on a corporate transaction in respect
of Computec. In the prior year, the tax credit of US$268m arose on the determination of certain liabilities in respect of historic positions and the
further utilisation of tax losses.
(c) Factors that affect tax charges
The effective tax rates for both years are lower than the main rate of UK corporation tax with the differences explained above. The Group’s tax
charge in the future will continue to be influenced by the profile of profits earned in the different countries in which the Group’s businesses
operate and could be affected by changes in tax law.
In the UK, the main rate of corporation tax was reduced to 24% with effect from 1 April 2012 and to 23% from 1 April 2013. Further proposed
reductions will reduce it to 21% from 1 April 2014 and 20% from 1 April 2015. The further proposed reductions have not yet been substantively
enacted and are therefore not recognised in these financial statements. The effect of these further reductions is expected to be to increase the
tax charge by US$18m in the financial year ending 31 March 2014 due to the effect of the rate reductions on deferred tax balances.
(d) Other information in respect of tax
Tax recognised in other comprehensive income and directly in equity is detailed in notes 18 and 41. Details of the tax position in the Group
balance sheet are given in note 38 and an analysis of the cash outflow in respect of tax is given in note 44(d).
17. Discontinued operations – comparison shopping and lead generation businesses
Prior to 31 March 2012, Experian agreed to divest the Group’s comparison shopping and lead generation businesses, and completed a
transaction in October 2012. As in the Group’s statutory financial statements for the year ended 31 March 2012, the results and cash flows of
these businesses are classified as discontinued. Prior to that they were reported as part of the North American and UK and Ireland segments.
(a) Results for discontinued operations
2013
US$m
2012
US$m
Revenue 147 283
Labour costs (34) (44)
Data and information technology costs (7) (7)
Depreciation and amortisation – (32)
Marketing and customer acquisition costs (99) (201)
Other operating charges (12) (8)
Total operating expenses (152) (292)
Loss before tax (5) (9)
Tax credit (including deferred tax of US$nil (2012: charge of US$2m)) 2 3
Loss after tax of discontinued operations (3) (6)
Profit on disposal of discontinued operations (note 47) – –
Tax credit in respect of disposal 121 –
Profit after tax on disposal of discontinued operations 121 –
Profit/(loss) for the financial year from discontinued operations 118 (6)