Annual Report - SABMiller

92 Notes to the consolidated financial statements SABMiller plc Annual Report 2010Notes to the consolidated financial statements continued7. Taxation2010 2009US$mUS$mCurrent taxation 725 670– Charge for the year (UK corporation tax: US$6 million (2009: US$4 million)) 755 693– Adjustments in respect of prior years (30) (23)Withholding taxes and other remittance taxes 77 67Total current taxation 802 737Deferred taxation 46 64– Charge for the year (UK corporation tax: US$nil (2009: US$nil)) 71 81– Adjustments in respect of prior years (14) (14)– Rate change (11) (3)Taxation expense 848 801Tax (credit)/charge relating to components of other comprehensive income is as follows:Deferred tax credit on actuarial gains and losses (10) (94)Deferred tax charge/(credit) on financial instruments 46 (31)36 (125)Total current tax 802 737Total deferred tax 82 (61)Total taxation 884 676Effective tax rate (%) 28.5 30.2See page 158 for the definition of the effective tax rate. This calculation is on a basis consistent with that used in prior years and is alsoconsistent with other group operating metrics.MillerCoors is not a taxable entity. The tax balances and obligations therefore remain with Miller Brewing Company as a 100% subsidiary of thegroup. This subsidiary’s tax charge includes tax (including deferred tax) on the group’s share of the taxable profits of MillerCoors and includestax in other comprehensive income on the group’s share of MillerCoors’ taxable items included within other comprehensive income.Tax rate reconciliation2010 2009US$mUS$mProfit before taxation 2,929 2,958Less: Share of post-tax results of associates and joint ventures (873) (516)2,056 2,442Tax charge at standard UK rate of 28% (2009: 28%) 576 684Exempt income (30) (39)Other incentive allowances (17) (21)Expenses not deductible for tax purposes 79 62Deferred tax asset not recognised 28 55Tax impact of MillerCoors joint venture 154 64Withholding taxes and other remittance taxes 71 67Other taxes 20 30Adjustments in respect of foreign tax rates 14 (74)Adjustments in respect of prior periods (44) (37)Deferred taxation rate change (11) (3)Deferred taxation on unremitted earnings of overseas subsidiaries 8 13Total taxation expense 848 801