Ardagh Glass Finance plc - Irish Stock Exchange

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
7. Income tax credit
2007 2006
E’000 E’000
Current tax ...................................................... 11,813 3,203
Deferred tax ..................................................... (12,008) (9,373)
(195) (6,170)
The tax on the Group’s profit/(loss) before tax differs from the theoretical amount that would arise
using the weighted average tax rate applicable to profits of the consolidated companies as follows:
2007 2006
E’000 E’000
Profit/(Loss) before tax ............................................. 4,381 (22,905)
Profit/(Loss) on ordinary activities multiplied by weighted effective current tax rate
of the Group: 30.2% (2006 29.1%) ................................... 1,323 (6,664)
Non-deductible items ............................................... 1,409 2,801
Utilization of previously unrecognised tax losses ........................... (4,297) (6,529)
Effect of movements in tax rates ...................................... (3,329) —
Tax losses for which no deferred income tax asset was recognised ............... 3,716 3,227
Adjustment in respect of prior years .................................... 1,033 936
Profits taxable at non-standard rate .................................... (50) 59
Total tax credit for the financial year ................................... (195) (6,170)
During the year, as a result of changes in United Kingdom and Germany corporation tax rates
which will become effective in 2008, deferred tax balances have been remeasured.
F-87