Download full Annual Report and Accounts - Kingfisher

Kingfi sher plc
Annual Report
and Accounts
2009/10
9 Income tax expense
71
£ millions 2009/10 2008/09
UK corporation tax
Current tax on profi ts for the year 85 34
Adjustments in respect of prior years (7) (14)
78 20
Overseas tax
Current tax on profi ts for the year 85 111
Adjustments in respect of prior years (1) 6
84 117
Deferred tax
Current year 4 (41)
Adjustments in respect of prior years 15 (8)
19 (49)
Income tax expense – continuing operations 181 88
Factors affecting tax charge for the year
The tax charge for the year differs from the standard rate of corporation tax in the UK of 28%. The differences are explained below:
£ millions 2009/10 2008/09
Profi t before taxation – continuing operations 566 90
Profi t multiplied by the standard rate of corporation tax in the UK of 28% (2008/09: 28%) 158 25
Share of post-tax results of joint ventures and associates (7) 4
Expenses not deductible for tax purposes 17 11
Temporary differences:
– Net gains on property (5) (4)
– Losses not recognised 7 62
Foreign tax rate differences 4 6
Adjustments in respect of prior years 7 (16)
Income tax expense – continuing operations 181 88
The effective rate of tax on profi t from continuing operations before exceptional items and excluding tax adjustments in respect of prior years is 30% (2008/09:
31%). Tax on exceptional items for the year is a charge of £7m, all of which relates to current year items. In 2008/09 tax on exceptional items was a credit of £7m,
all of which related to current year items. The effective tax rate calculation is set out in the Financial review on page 22.
In addition to the amounts charged to the income statement, tax of £55m has been credited directly to equity (2008/09: £35m credit), of which a £12m credit
(2008/09: £2m charge) is included in current tax and a £43m credit (2008/09: £37m credit) is included in deferred tax.
Kingfi sher paid €138m tax to the French tax authorities in the year ended 31 January 2004 as a consequence of the Kesa Electricals demerger and recorded this
as an exceptional tax charge. Kingfi sher appealed against this tax liability and the tribunal found in favour of Kingfi sher in June 2009. As a result, on 7 September
2009 the Group received €169m (£148m) from the French tax authorities, representing a refund of the €138m and €31m of repayment supplement. The French
tax authorities have appealed against this decision and therefore no income has been recognised in these fi nancial statements.