Annual Report 2000 in PDF - Antofagasta plc

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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$m £m £mAccelerated capital allowances 67.3 39.7 45.1 24.6Timing differences on decommissioning, siterehabilitation and severance provisions (0.8) (0.1) (0.5) (0.1)Short-term timing differences (1.3) – (0.9) –Tax losses carried forward (32.0) (32.6) (21.5) (20.2)Deferred tax provision at the end of the year 33.2 7.0 22.2 4.3
7 Tax on Profit on Ordinary Activities (continued)c) Factors affecting the current tax charge for the yearThe principal factors affecting the current tax charge for the year are set out below:US DollarsSterling2000 1999 2000 1999US$m US$m £m £mProfit on ordinary activities before tax 223.3 13.2 146.8 8.1Profit on ordinary activities multiplied by thestandard rate of corporation tax in Chile of 15% 33.5 2.0 22.0 1.2Capital allowances in the year in excess of depreciation (27.6) (34.8) (18.1) (21.4)Other timing differences reflected in deferred tax charge 2.0 0.1 1.3 –Offsetting tax losses (0.5) 32.6 (0.3) 20.1Transfer to current tax (0.9) – (0.6) –Factors reflected in deferred tax charge for the year (27.0) (2.1) (17.7) (1.3)Dividend income from other fixed asset investments not subjectto further tax on receipt (4.7) (0.8) (3.0) (0.5)Other differences (principally net losses in period not subjectto relief or offset) 0.2 0.7 0.1 0.5Current tax charge/(credit) for the year 2.0 (0.2) 1.4 (0.1)Under Chilean tax legislation, full relief is given for pre-operational costs on the start-up of a project, and capitalallowances are available on an accelerated basis for expenditure relating to the construction or purchase of tangiblefixed assets. These factors have resulted in the availability of tax losses at Los Pelambres which began commercialoperations this year. These tax losses will be utilised in future years against subsequent tax profits, and have thereforebeen reflected in the deferred tax charge for the year.Dividend income from the Group’s investment in Quiñenco is received out of its post-tax profits and is not subject tofurther tax on receipt. Further details about the Group’s investment in Quiñenco are given in Note 14.8 DividendsUS Dollars2000 2000 1999 1999cents percents pershare US$m share US$mOrdinary dividends – equityInterim paid 13 October 2000 4.92 9.7 3.56 7.1Proposed final payable 8 June 2001– Special 18.03 35.6 – –– Ordinary 14.42 28.4 9.26 18.3Total ordinary dividend 37.37 73.7 12.82 25.4ANTOFAGASTA PLC Annual Report 200051Preference dividends – non-equity 0.2 0.2
Page 1 and 2: ANNUAL REPORT 2000
Page 3: Directors and AdvisorsDirectorsA A
Page 8: Chairman’s ReviewMININGMinera Los
Page 11 and 12: View of crushing facilitiesDome ove
Page 13: Harvesting cathodes from electrowin
Page 16 and 17: Chairman’s ReviewTRANSPORT ANDREA
Page 18 and 19: Chairman’s ReviewANTOFAGASTA PLC
Page 20 and 21: Financial ReviewBasis of Financial
Page 22 and 23: Financial ReviewIncome from Other F
Page 24 and 25: Financial ReviewCash Flows and Fina
Page 26 and 27: Production StatisticsFor the year e
Page 28 and 29: Report of the DirectorsThe Director
Page 30 and 31: Report of the DirectorsSpecial Busi
Page 32 and 33: Corporate GovernanceGiven its small
Page 34 and 35: Report on Remuneration and Related
Page 36 and 37: Auditors’ Report to the Members o
Page 38 and 39: Consolidated Profit and Loss Accoun
Page 40 and 41: Consolidated Statement of Total Rec
Page 42 and 43: Parent Company Balance SheetAt 31 D
Page 44 and 45: Notes to the Financial Statements1
Page 78 and 79: Five Year Summary - US DollarsConso
Page 80 and 81: Notice of MeetingAntofagasta plcNot
Page 82: Designed by RDA. Printed by Royle F

Annual Report 2000 in PDF - Antofagasta plc

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