Annual Reports - RTÉ

ANNUAL REPORT & GROUP FINANCIAL STATEMENTS 2007
6 Discontinued operation
Teilifís na Gaeilge was established as an independent statutory entity to operate the television service broadcast as TG4 on 1
April 2007, pursuant to the Teilifís na Gaeilge (Establishment Day) Order 2007, which implemented the relevant provisions of the
Broadcasting Act 2001. Prior to this separation, the operations of TG4 had been conducted through Seirbhísí Theilifís na Gaeilge
Teoranta, a wholly owned RTÉ subsidiary.
There was no impact on the Income Statement from this separation as no amounts were recognised in the RTÉ Group Income
Statement in prior years in relation to TG4.
Effect of disposal on the financial position of the Group as at 31 March 2007
2007
€’000
Property, plant and equipment (9,287)
Cash and cash equivalents (3,568)
Trade and other receivables (1,806)
Deferred tax liabilities -
Trade and other payables 2,457
Capital grants 12,204
Consideration received, satisfied in cash -
Cash disposed of (3,568)
Net cash outflow (3,568)
-
7 Income tax expense
2007 2006
€’000 €’000
Current tax expense
Current corporation tax 4,718 -
4,718 -
Deferred tax credit
Origination and reversal of temporary differences (note 20) (1,564) (937)
(1,564) (937)
Income tax expense/(credit) from continuing operations 3,154 (937)
Television Licence Fee income that RTÉ receives by way of grant-in-aid is subject to corporation tax with effect from 1 January 2007,
in line with the notification received from Revenue in November 2006. Revenue have also sought to restrict the availability of past
losses carried forward. RTÉ has challenged this approach and as the issue is ongoing no account has been taken of any potential
losses forward in preparing these accounts. If a successful outcome is achieved, the group had corporation tax losses forward at 31
December 2006: €1.88 billion.
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