2009 Annual Report - CRH

10. Income Tax Expense continued
Factors that may affect future tax charges and other disclosure requirements
Excess of capital allowances over depreciation
Based on current capital investment plans, the Group expects to continue to be in a position to claim capital allowances in excess of depreciation in future years.
Investments in subsidiaries and associates and interests in joint ventures
No provision has been made for temporary differences applicable to investments in subsidiaries and interests in joint ventures as the Group is in a position to control
the timing of reversal of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future. Due to the absence of
control in the context of associates (significant influence only), deferred tax liabilities are recognised where appropriate in respect of CRH’s investments in these entities
on the basis that the exercise of significant influence would not necessarily prevent earnings being remitted by other shareholders in the undertaking. Given that
participation exemptions and tax credits would be available in the context of the Group’s investments in subsidiaries and joint ventures in the majority of the jurisdictions
in which the Group operates, the aggregate amount of temporary differences in respect of which deferred tax liabilities have not been recognised would be immaterial
(with materiality defined in the context of the year-end 2009 financial statements).
Other considerations
The total tax charge in future periods will be affected by any changes to the corporation tax rates in force in the countries in which the Group operates. The current
tax charge will also be impacted by changes in the excess of tax depreciation (capital allowances) over accounting depreciation and the use of tax credits.
11. Dividends
As shown in note 30, the Company has various classes of share capital in issue comprising Ordinary Shares, 5% Cumulative Preference Shares and 7% ‘A’ Cumulative
Preference Shares. The dividends paid and proposed in respect of these classes of share capital are as follows:
2009 2008
€m €m
Dividends to shareholders
Preference
5% Cumulative Preference Shares €3,175 (2008: €3,175) - -
7% 'A' Cumulative Preference Shares €77,521 (2008: €77,521)
Equity (i)
- -
Final - 43.74c (restated) per Ordinary Share in May 2009 (43.28c, restated paid in May 2008) 258 260
Interim - paid 18.50c per Ordinary Share (2008: 18.48c, restated) 128 109
Total 386 369
Dividends proposed (memorandum disclosure)
Equity (i)
Final 2009 - proposed 44.00c per Ordinary Share (2008: 43.74c, restated) 307 258
Reconciliation to Consolidated Statement of Cash Flows
Dividends to shareholders 386 369
Less: issue of shares in lieu of dividends (ii) (148) (22)
Dividends paid to equity holders of the Company 238 347
Dividends paid by subsidiaries to minority interest 7 5
Total dividends paid 245 352
(i) Comparative per share amounts for 2008 have been restated to reflect the bonus element of the March 2009 Rights Issue - see note 12 (iii) below.
(ii) In accordance with the scrip dividend scheme, shares to the value of €148 million (2008: €22 million) were issued in lieu of dividends.
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