2009 Annual Report - CRH

10. Income Tax Expense
82 CRH
2009 2008
€m €m
Current tax
Republic of Ireland
Corporation tax at 12.5% (2008: 12.5%) (5) 21
Less: manufacturing relief - (3)
Tax on disposal of non-current assets 1 3
(4) 21
Overseas tax 29 239
Tax on disposal of non-current assets - Overseas 11 17
Total current tax 36 277
Deferred tax
Origination and reversal of temporary differences:
Defined benefit pension obligations 11 5
Share-based payment expense (3) 2
Derivative financial instruments (11) (1)
Other items 101 83
Total deferred tax 98 89
Income tax expense 134 366
Reconciliation of applicable tax rate to effective tax rate
Profit before tax (€m) 732 1,628
Tax charge expressed as a percentage of profit before tax (effective tax rate):
- current tax expense only 4.9% 17.0%
- total income tax expense (current and deferred) 18.3% 22.5%
The following table reconciles the applicable Republic of Ireland statutory tax rate to the effective tax rate (current and deferred) of the Group:
% of profit before tax
Irish corporation tax rate 12.5 12.5
Manufacturing relief in the Republic of Ireland - (0.2)
Higher tax rates on overseas earnings 3.8 10.5
Other items (comprising items not chargeable to tax/expenses not deductible for tax) 2.0 (0.3)
Total effective tax rate 18.3 22.5
Current and deferred tax movements recognised directly within equity
€m €m
Recognised within the Consolidated Statement of Comprehensive Income:
Deferred tax
Defined benefit pension obligations 20 67
Cash flow hedges (2) 4
18 71
Recognised within the Consolidated Statement of Changes in Equity:
Current tax
Share option exercises
Deferred tax
1 2
Share-based payment expense 2 (15)
3 (13)
Income tax recognised within equity 21 58