The way ahead? - Vodafone

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7. Taxation
Vodafone Group Plc
Annual Report 2013
Notes to the consolidated financial statements (continued)
This note explains how our Group tax charge arises. The deferred tax section of the note also provides
information on our expected future tax charges and sets out the tax assets held across the Group together with
our view on whether or not we expect to be able to make use of these in the future.
Income tax expense
2013 2012 2011
£m £m £m
United Kingdom corporation tax expense/(income):
Current year – – 141
Adjustments in respect of prior years 24 (4) (5)
24 (4) 136
Overseas current tax expense/(income):
Current year 3,070 2,440 2,152
Adjustments in respect of prior years (297) (231) (477)
2,773 2,209 1,675
Total current tax expense 2,797 2,205 1,811
Deferred tax on origination and reversal of temporary differences:
United Kingdom deferred tax (52) (8) (275)
Overseas deferred tax (163) 349 92
Total deferred tax (income)/expense (215) 341 (183)
Total income tax expense 2,582 2,546 1,628
UK operating profits are more than offset by statutory allowances for capital investment in the UK network and systems plus ongoing interest costs
including those arising from the £6 billion of spectrum payments to the UK government in 2000.
Tax credited directly to other comprehensive income
2013 2012 2011
£m £m £m
Current tax charge/(credit) 2 (5) (14)
Deferred tax credit (40) (119) (117)
Total tax credited directly to other comprehensive income (38) (124) (131)
Tax credited directly to equity
2013 2012 2011
£m £m £m
Current tax credit (17) (1) (5)
Deferred tax credit (1) (1) (19)
Total tax credited directly to equity (18) (2) (24)