Experian 2015 Annual Report Download - page 140

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(c) Factors that affect tax charge
The effective tax rate for each year is higher than the main rate of UK corporation tax, with the differences explained above. The Group’s
tax charge 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 21% from 1 April 2014
and to 20% from 1 April 2015.
17. Discontinued operations
(a) Comparison shopping and lead generation businesses
Experian completed a transaction to divest these businesses in October 2012 and their results and cash flows are classified as discontinued.
(i) Results – profit on disposal
2015
US$m
2014
US$m
Profit on disposal of discontinued operations – –
Tax credit in respect of disposal 21 7
Profit for the financial year from discontinued operations 21 7
In the year ended 31 March 2014, a current tax credit of US$7m was recognised primarily on tax losses arising in respect of the disposal.
A further current tax credit of US$21m was recognised in the year ended 31 March 2015.
(ii) Cash inflow from operating activities
2015
US$m
2014
US$m
Tax recovery on disposal transaction 32 144
Other cash flows from operating activities – (4)
Cash inflow from operating activities 32 140
(b) Cash flow on disposal of discontinued operations
2015
US$m
2014
US$m
Comparison shopping and lead generation businesses:
Partial redemption of loan note – 5
Transaction costs paid (1) –
Comparison shopping and lead generation businesses (1) 5
Cash flow for earlier disposal (8) –
Net cash (outflow)/inflow (9) 5
The net cash outflow of US$9m on the disposal of the discontinued businesses (2014: inflow of US$5m) is disclosed in the Group cash flow
statement within net cash flows used in investing activities. Contingent consideration is available to Experian, in respect of the comparison
shopping and lead generation businesses, if defined profit targets are achieved over time, and in certain other circumstances, up to
US$25m. This is in addition to the amount of US$74m receivable and recognised in respect of a loan note (note 28(b)).
139
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Notes to the Group nancial statements Financial statements