(Preliminary Results Announcement) PDF 0.71MB - Cairn Energy PLC

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5.4 Taxation on Lossa) Analysis of tax (credit)/charge in yearCurrent tax:2012$m2011$mUK corporation taxTax on profits at 24.5% (2011: 26.49%) - 2.1Foreign TaxRefund of Norwegian exploration expenses (39.4) -Withholding taxes deducted at source 0.1 -Indian Corporate Income Tax on profits for the year (2011: 42.08%) - 10.9Indian Regular Tax on profits for the year (2011: 32.65%) - 2.5Indian Minimum Alternate Tax on profits for the year (2011: 19.32%) - 279.9Indian tax on capital gains (2011: 21.01%) - 590.3(39.3) 883.6Total current tax (credit)/charge (39.3) 885.7Deferred tax:United KingdomTemporary differences in respect of non-current assets (64.4) -Losses (10.6) -Other temporary differences 0.2 -(74.8) -IndiaTemporary differences in respect of non-current assets (144.6) 798.7NorwayTemporary differences in respect of non-current assets (6.7) -Losses (1.0) -Other temporary differences (0.4) -(8.1) -Total deferred tax (credit)/charge (227.5) 798.7Tax (credit)/charge on profit/(loss) (266.8) 1,684.432
5.4 Taxation on Loss (continued)The tax (credit)/charge to the income statement is disclosed as follows:2012$m2011$mTax (credit)/charge on continuing operations (266.8) 0.1Tax charge on discontinued operations - 1,684.3(266.8) 1,684.4b) Factors affecting tax (credit)/charge for yearA reconciliation of income tax expense applicable to loss before income tax at the applicable tax rate to income taxexpense at the Group’s effective income tax rate is as follows:20122011$m$mLoss from continuing operations before tax (194.2) (1,189.3)Profit from discontinued operations before tax - 7,438.8(Loss)/profit before taxation (194.2) 6,249.5Tax at the average UK rate of corporation tax of 24.50% (2011: 26.49%) (47.6) 1,655.5Effects of:Temporary differences not recognised (16.7) 308.0Overseas deferred tax in respect of available for sale financial asset (144.6) -Non-deductible loss on disposal of available for sale financial asset 20.0 -Special tax rates and reliefs applying to oil and gas activities (81.1) -Share-based payments 1.9 (10.1)Foreign exchange movements (0.6) 0.2Non-deductible expenses 8.5 101.6Non-taxable income (4.4) (102.4)Impact of overseas tax rates (2.3) 127.2Withholding tax 0.1 -Disposal of subsidiary charged at Capital Gains Tax rate - (159.0)Indian tax holiday - (354.4)Minimum Alternate Tax payable - 117.8Total tax charge/(credit) (266.8) 1,684.4The reconciliation shown above has been based on the UK standard rate of corporation tax for 2012 of 24.5% (2011:26.49%). In previous years, the reconciliation was based on the weighted average rate of corporate taxation applyingto the group based on its worldwide activities for the year concerned. The change has been adopted to facilitatecomparison between the tax expenses or credits applying to different years. The 2011 reconciliation shown above hasbeen restated as a result of this change.The UK main rate of corporation tax was 26% prior to 1 April 2012, and 24% from that date onwards. The reduction inthe tax rate from 26% to 24% has resulted in an average rate of corporation tax of 24.5% for the year ended 31December 2012, as shown above. The rate will reduce to 23% on 1 April 2013 and to 21% on 1 April 2014.33
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Page 6 and 7: PeopleWe would like to recognise an
Page 8 and 9: Cairn initiated its Environmental I
Page 10 and 11: the Norwegian North Sea in the APA
Page 12 and 13: Financial ReviewThe successful comp
Page 14 and 15: Group capital expenditure for the y
Page 16 and 17: Cairn Energy PLCGroup Income Statem
Page 18 and 19: Cairn Energy PLCGroup Balance Sheet
Page 20: Cairn Energy PLCGroup Statement of
Page 23 and 24: 2. 1 Corporate Acquisitions (contin
Page 25 and 26: 2.2 Intangible Exploration/Appraisa
Page 27 and 28: 4 Assets and Investments: Intangibl
Page 29 and 30: 5.1 Segmental Analysis (continued)T
Page 31: 5.2 Finance Income2012 2011$m $mBan
Page 35 and 36: 5.5 Earnings per Ordinary ShareBasi
Page 37 and 38: GlossaryThe following are the main
Page 39: ‣ Cairn’s approach to sustainab

(Preliminary Results Announcement) PDF 0.71MB - Cairn Energy PLC

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