Description Page - Doosan Power Systems

DOOSAN BABCOCK ENERGY
Annual Report and Financial Statements 2007
Notes to the financial statements continued
6. Taxation charge
34
Proforma
12 months 9 months 12 months
ended ended ended
December December March
2007 2007 2007
Notes £000 £000 £000
Current tax:
UK Corporation tax at 30% (March 2007: 30%) 520 – 259
In respect of prior year 379 340 (185)
899 340 74
Overseas taxation 1,412 698 989
Total current tax 2,311 1,038 1,063
Deferred taxation excluding pension (848) 137 (2,766)
Deferred tax on pension charge 3,847 2,733 5,288
Total deferred tax 15 2,999 2,870 2,522
Total tax on profit on ordinary activities 5,310 3,908 3,585
Factors affecting tax charge for period
The current tax assessed for the period is lower (March 2007: lower) than the standard rate of corporation tax in the UK (30%). The differences are
explained below:
Proforma
12 months 9 months 12 months
ended ended ended
December December March
2007 2007 2007
£000 £000 £000
Profit on ordinary activities before tax 22,698 11,563 11,056
Profit on ordinary activities multiplied by standard rate of
corporation tax in the UK of 30% (March 2007: 30%) 6,809 3,469 3,317
Overseas losses with no tax relief in period 621 465 1,185
Group relief (582) (438) (385)
Expenses not deductible for tax purposes (1,004) 137 (1)
Other timing differences – – (1,236)
Timing difference re pension charge (4,382) (3,287) (1,828)
Capital allowances for period in excess of depreciation 359 269 16
Utilisation of tax losses – – (191)
Overseas tax 111 83 371
Adjustment to tax charge in respect of previous period 379 340 (185)
Current tax charge for period 2,311 1,038 1,063
Factors that may affect future tax charges
The Group has tax losses and other short term timing differences in the region of £2.3m (tax benefit), which may reduce future tax payments.