EirGrid plc Annual Report 2011

EirGrid plc Annual Report & Accounts 2011
8. Income Taxes (continued)
Deferred tax balances must be recognised at the future tax rate applicable when the balance is expected to
unwind. As such, the rate reduction to 25% is reflected in the closing deferred tax balance. Had this change
not been substantively enacted at 30 September 2011, the Group’s deferred tax asset would have been
decreased by €0.30m, with €0.03m credited to equity and €0.33m charged to the Consolidated Income
Statement.
Further annual reductions in the corporate tax rate of 1% annually reaching 23% on 1 April 2014 have been
announced. The Finance Act 2011 did not include these additional rate reductions so they are not
substantively enacted and therefore not reflected in the closing deferred tax balance. Had this change been
substantively enacted at 30 September 2011, the Group’s deferred tax asset would have been increased by
€0.30m, with €0.03m charged to equity and €0.33m credited to the Consolidated Income Statement.
Deferred tax assets/(liabilities) arise from the following:
Accelerated Retirement Cash Section
Intangible tax benefits flow Tax 75 Other
assets depreciation obligations hedges losses payment differences Total
Group €’000 € ’000 € ’000 € ’000 € ’000 € ’000 €’000 €’000
Deferred tax (liability)/asset
as at 1 October 2009 (4,859) (175) 3,149 176 827 - 143 (739)
Credit/(charge) to the Income
Statement for the year 127 640 (101) - (681) 1,558 (143) 1,400
(Charge)/credit to the Statement of
Recognised Income and Expense - - (522) 5,381 - - - 4,859
Exchange differences - (52) 29 7 41 28 - 53
Deferred tax (liability)/asset
as at 30 September 2010 (4,732) 413 2,555 5,564 187 1,586 - 5,573
Credit/(charge) to the Income
Statement for the year 341 654 (125) - (68) (826) - (24)
(Charge)/credit to the
Statement of Recognised
Income and Expense - - (462) 1,270 - - - 808
Exchange differences 79 14 - (5) (2) (24) - 62
Deferred tax (liability)/asset
as at 30 September 2011 (4,312) 1,081 1,968 6,829 117 736 - 6,419
89