Annual Report & Accounts 2012 - Euromoney Institutional Investor ...

Euromoney Institutional Investor PLC Annual Report and Accounts 2012
www.euromoneyplc.com
Our Performance
9 Tax on profit on ordinary activities
2012
£000
2011
£000
Current tax expense
UK corporation tax expense 8,229 4,018
Foreign tax expense 13,243 12,359
Adjustments in respect of prior years 1,294 (709)
22,766 15,668
Deferred tax (credit)/expense
Current year 2,759 7,605
Adjustments in respect of prior years (2,997) (746)
(238) 6,859
Total tax expense in Income Statement 22,528 22,527
Effective tax rate 24% 33%
The adjusted effective tax rate for the year is set out below:
Reconciliation of tax expense in Income Statement to adjusted tax expense
Total tax expense in Income Statement 22,528 22,527
Add back:
Tax on intangible amortisation 5,146 4,041
Tax on exceptional items 456 312
Tax on additional accelerated long-term incentive expense – 493
5,602 4,846
Tax on US goodwill amortisation (6,474) (4,664)
Tax adjustments in respect of prior years 1,703 1,455
831 1,637
Adjusted tax expense 23,359 24,164
Adjusted profit before tax (refer to the appendix to the Chairman’s Statement) 106,769 92,684
Adjusted effective tax rate 22% 26%
The group presents the above adjusted effective tax rate to help users of this report better understand its tax charge. In arriving at this rate, the group
removes the tax effect of items which are adjusted for in arriving at the adjusted profit disclosed in the appendix to the Chairman’s Statement. However,
the current tax effect of goodwill and intangible items is not removed. The group considers that the resulting adjusted effective tax rate is more
representative of its tax payable position, as the deferred tax effect on the goodwill and intangible items is not expected to crystallise.
The UK income tax expense is based on a blended rate of the UK statutory rates of corporation tax during the year to September 30 2012 of 25%
(2011: 27%) and reflects the reduction in the UK corporation tax rate from 26% to 24% from April 1 2012 and to 23% from April 1 2013. This change
has resulted in a small deferred tax credit arising on the reduction in the carrying value of deferred tax liabilities reflecting the anticipated rate of tax at
which those liabilities are expected to reverse.
2012
£000
2011
£000
Notes to the Consolidated Financial Statements
Company Accounts Group Accounts Our Governance
79