Annual Report 2000 in PDF - Antofagasta plc

Notes to the Financial Statements7 Tax on Profit on Ordinary Activitiesa) Analysis of tax charge for the yearThe Company and all its subsidiaries are resident outside the United Kingdom and accordingly the Group is not liableto United Kingdom corporation tax. Subsidiaries incorporated in Chile are liable to Chilean corporation tax at the rateof 15% (1999 – 15%), with additional tax of 20% payable on profits distributed overseas. The Group tax charge for theyear comprises current and deferred tax as set out below.US DollarsSterling2000 1999 2000 1999US$m US$m £m £mChilean corporation tax on profits for the year 1.3 (0.7) 0.9 (0.4)Other overseas corporation tax on profits for the year 0.7 – 0.5 –Share of associates’ current tax – 0.5 – 0.3Current tax charge/(credit) for the year 2.0 (0.2) 1.4 (0.1)Deferred tax charge for the year – origination and reversal oftiming differences 27.0 2.1 17.7 1.3Tax charge for the year 29.0 1.9 19.1 1.2b) Analysis of deferred tax provision at the end of the yearThe deferred tax provision at the end of the year is analysed below between its main components. The movement in thedeferred tax provision during the year is analysed in Note 20 together with provisions for other liabilities and charges.No deferred tax has been provided on gains recognised on the revaluation of freehold land and railway track as it isnot envisaged that any tax will be payable in the foreseeable future. If these assets were sold at their revalued amounts,additional tax of US$2.9 million (£1.8 million) could become payable. Further details of the revaluation are given inNote 11.No deferred tax is recognised on the unremitted earnings of Chilean and other overseas subsidiaries. As such earnings areretained for current or future reinvestment, it is not expected that any tax will become payable in the foreseeable future.ANTOFAGASTA PLC Annual Report 200050US DollarsSterling2000 1999 2000 1999US$m US$m £m £mAccelerated capital allowances 67.3 39.7 45.1 24.6Timing differences on decommissioning, siterehabilitation and severance provisions (0.8) (0.1) (0.5) (0.1)Short-term timing differences (1.3) – (0.9) –Tax losses carried forward (32.0) (32.6) (21.5) (20.2)Deferred tax provision at the end of the year 33.2 7.0 22.2 4.3