Experian 2016 Annual Report Download - page 165

163•Notes to the Group nancial statementsFinancial statements
(iii) Other information on deferred tax assets and liabilities
As set out in note 5, there are a number of critical judgments in assessing the recognition of deferred tax assets. The Group has not
recognised assets of US$142m (2015: US$132m) in respect of losses that could be utilised against future taxable income and assets
of US$10m (2015: US$10m) in respect of capital losses that could be utilised against future taxable gains. Whilst these losses are
available indefinitely, they have arisen in undertakings in which it is not currently anticipated that future benefit will be available from
their use.
There are retained earnings of US$13,322m (2015: US$12,619m) in subsidiary undertakings which would be subject to tax if remitted
to Experian plc. No deferred tax liability has been recognised on these because the Group is in a position to control the timing of the
reversal of the temporary difference and it is probable that such differences will not reverse in the foreseeable future. Given the mix
of countries and tax rates, it is not practicable to determine the impact of such remittance.
The main rate of UK corporation tax was reduced to 20% with effect from 1 April 2015. Further reductions will reduce the rate to 19%
from 1 April 2017 and 18% from 1 April 2020. These further reductions had been substantively enacted at 31 March 2016. Whilst their
effects are recognised in these financial statements, deferred tax arising in the UK has been principally provided at 20% (2015: 20%).
(b) Net current tax assets/(liabilities)
2016
US$m
2015
US$m
At 1 April (62) (78)
Exchange and other differences (9) (12)
Tax charge in the Group income statement – continuing operations (note 15(a)) (202) (164)
Tax credit in the Group income statement – discontinued operations (note 16(a)) –21
Tax recognised directly in equity on transactions with owners (9) 35
Tax paid on profit on disposal of subsidiaries (note 13(b)) 42 –
Other tax paid (note 37(c)) 136 113
Transfers –23
At 31 March (104) (62)
Presented in the Group balance sheet as:
Current tax assets 24 29
Current tax liabilities (128) (91)
At 31 March (104) (62)
Tax recognised directly in equity on transactions with owners relates to employee share incentive plans.
34. Provisions
2016 2015
North America
security
incident
US$m
Other
liabilities
US$m
Total
US$m
Restructuring
costs
US$m
Other
liabilities
US$m
Total
US$m
At 1 April –31 31 15 39 54
Differences on exchange –(3) (3) (1) (12) (13)
Amount charged in the year 20 13 33 –11 11
Utilised (20) (14) (34) (14) (7) (21)
At 31 March – 27 27 –31 31
Details of the North America security incident and the related costs and liabilities are given in notes 13(a) and 40(a). Other liabilities
principally comprise liabilities of Serasa S.A., in connection with local legal and tax issues, which were primarily recognised on its
acquisition in 2007. Restructuring costs principally comprises liabilities in connection with the cost-efficiency programme, which
was completed in the prior year.