Tesco 2013 Annual Report Download - page 93

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89
Tesco PLC Annual Report and Financial Statements 2013
OVERVIEW BUSINESS REVIEW PERFORMANCE REVIEW GOVERNANCE FINANCIAL STATEMENTS
Note 6 Taxation continued
Reconciliation of effective tax charge
2013
£m
2012
£m
Profit before tax 1,960 4,038
Tax charge at 24.2% (2012: 26.2%) (474) (1,058)
Effect of:
Non-deductible expenses (357) 1
Differences in overseas taxation rates 38 43
Adjustments in respect of prior years 104 54
Share of profits of joint ventures and associates 13 14
Change in tax rate 102 72
Total income tax charge for the year (574) (874)
Effective tax rate 29.3% 21.6%
Tax on items credited directly to the Group Statement of Changes in Equity
2013
£m
2012
£m
Current tax charge on:
Share-based payments (6) (1)
Deferred tax credit/(charge) on:
Share-based payments 1(5)
Total tax on items charged to Group Statement of Changes in Equity (5) (6)
Tax relating to components of the Group Statement of Comprehensive Income
2013
£m
2012
£m
Current tax credit/(charge) on:
Pensions 43 –
Foreign exchange movements (27) 6
Fair value of movement on available-for-sale investments 6(2)
Deferred tax credit/(charge) on:
Pensions 85 94
Fair value movements on cash flow hedges (3) (25)
Total tax on items credited to Group Statement of Comprehensive Income 104 73
Deferred tax
The following are the major deferred tax (liabilities)/assets recognised by the Group and movements thereon during the current and prior financial years:
Property-
related
items*
£m
Retirement
benefit
obligation
£m
Share-based
payments
£m
Short-term
timing
differences
£m
Tax losses
£m
Financial
Instruments
£m
Other
pre/post
tax temporary
differences
£m
Total
£m
At 26 February 2011 (1,592) 362 47 94 32 4 7 (1,046)
(Charge)/credit to the Group Income Statement (93) 9(31) (33) 3(1) –(146)
Charge to Group Statement of Changes in Equity – – (5) – – – – (5)
Credit/(charge) to Group Statement of
Comprehensive Income –94 – – – (25) –69
Discontinued operations – – – – (14) – – (14)
Business combinations (1) – – 3 1 – 1 4
Foreign exchange and other movements (3) – – – 2 – 2 1
At 25 February 2012 (1,689) 465 11 64 24 (22) 10 (1,137)
Credit/(charge) to the Group Income Statement 87 (12) 914 13 1 1 113
Credit to Group Statement of Changes in Equity – – 1 – – – – 1
Credit/(charge) to Group Statement of
Comprehensive Income –85 – – – (3) –82
Discontinued operations – – – – – – (3) (3)
Business combinations – – – 1 1 – (2) –
Foreign exchange and other movements** (20) 1 – 4 2 – 1 (12)
At 23 February 2013 (1,622) 539 21 83 40 (24) 7(956)
* Property-related items include deferred tax liability on rolled over gains of £340m (2012: £361m) and deferred tax assets on capital losses of £71m (2012: £71m). The remaining
balance relates to accelerated tax depreciation.
** The deferred tax charge for foreign exchange and other movements of £12m (2012: £1m credit) relating to the retranslation of deferred tax balances at the balance sheet date
is included within the Group Statement of Comprehensive Income under the heading currency translation differences.