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ANNUAL REPORT & GROUP FINANCIAL STATEMENTS 2008
7 Income Tax (Credit) / Expense
2008 2007
€’000 €’000
Current Tax (Credit) / Expense
Current corporation tax 2,018 4,718
Prior period overprovision (2,381) -
(363) 4,718
Deferred Tax Credit
Origination and reversal of temporary differences (note 21) (5,057) (1,564)
Recognition of previously unrecognised tax losses (4,039) -
(9,096) (1,564)
Total Income Tax (Credit) / Expense (9,459) 3,154
Reconciliation of Effective Tax Rate
2008 2007
€’000 €’000
(Deficit) / Surplus before income tax multiplied by the
standard rate of corporation tax in Ireland of 12.5% (2007: 12.5%) (1,178) 3,698
Effects of:
Income taxable at a higher rate of tax 566 432
Recognition of losses forward (4,039) -
Release of deferred tax liability on IFRS transitional adjustments (2,972) -
Other differences 545 (976)
Prior period overprovision (2,381) -
Total Income Tax (Credit)/Expense (9,459) 3,154
Deferred Tax Recognised directly in Equity
2008 2007
€’000 €’000
Relating to defined benefit pension scheme (note 21) 2,192 (458)
2,192 (458)
Television Licence Fee income that RTÉ receives by way of grant-in-aid is subject to corporation tax with effect from 1 January 2007.
The Group has trading losses forward for tax purposes of €540 million at 31 December 2008. Due to the uncertainty surrounding
when the losses may ultimately be utilised, a deferred tax asset has only been recognised in respect of IFRS transitional adjustments in
respect of which deferred tax liabilities had already been recognised (refer to Note 21).
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