Annual Report 2011 - Hongkong Land

Notes to the Financial Statements
9 Tax
2011 2010
US$m
US$m
Current tax (128.6) (115.4)
Deferred tax
– changes in fair value of investment properties (0.9) 0.7
– other temporary differences (5.0) (7.4)
(5.9) (6.7)
(134.5 ) (122.1 )
Reconciliation between tax expense and tax at applicable tax rate:
Tax at applicable tax rate (851.5) (659.9)
Change in fair value of investment properties not taxable in determining
taxable profit 722.2 528.7
Expenses not deductible in determining taxable profit (11.8) (11.8)
Income not subject to tax 17.0 22.3
Utilisation of previously unrecognised tax losses 0.3 2.2
(Under)/overprovision in prior years (3.1) 0.9
Losses not recognised (0.8) (0.1)
Deferred tax assets written off (1.2) (0.2)
Deferred tax liabilities written back 0.3 –
Withholding tax (5.9) (4.2)
(134.5 ) (122.1 )
Tax relating to components of other comprehensive income is analysed as follows:
Pension assets 0.8 –
Cash flow hedges (1.0) 1.1
(0.2 ) 1.1
The applicable tax rate for the year of 16.5% (2010: 16.8%) represents the weighted average of the rates of taxation prevailing in
the territories in which the Group operates. The decrease in the applicable tax rate is caused by a change in the profitability of the
Group’s subsidiaries in the respective territories.
The Group has no tax payable in the United Kingdom (2010: Nil).
Share of tax of associates and joint ventures of US$61.8 million (2010: US$62.0 million) is included in share of results of
associates and joint ventures.
42 Hongkong Land