BP 2011 Annual Report Download - page 212

210 BP Annual Report and Form 20-F 2011
Notes on financial statements
18. Taxation
Tax on profit
$ million
2011 2010 2009
Current tax
Charge for the year 7,477 6,766 6,045
Adjustment in respect of prior years 111 (74) (300)
7,588 6,692 5,745
Deferred tax
Origination and reversal of temporary differences in the current year 5,664 (8,157) 2,131
Adjustment in respect of prior years (515) (36) 489
5,149 (8,193) 2,620
Tax charge (credit) on profit (loss) 12,737 (1,501) 8,365
Tax included in other comprehensive incomea
$ million
2011 2010 2009
Current tax (10) (107) –
Deferred tax (1,649) 244 (525)
(1,659) 137 (525)
a See Note 39 for further information.
Tax included directly in equity
$ million
2011 2010 2009
Current tax –(37) –
Deferred tax (7) 64 (65)
(7) 27 (65)
Reconciliation of the effective tax rate
The following table provides a reconciliation of the UK statutory corporation tax rate to the effective tax rate of the group on profit or loss before taxation.
With effect from 1 April 2011 the UK statutory corporation tax rate reduced from 28% to 26%.
For 2010, the items presented in the reconciliation are distorted as a result of the overall tax credit for the year and the loss before taxation. In
order to provide a more meaningful analysis of the effective tax rate for 2010, the table also presents separate reconciliations for the group excluding
the impacts of the Gulf of Mexico oil spill, and for the impacts of the Gulf of Mexico oil spill in isolation. For 2011, the effective tax rate is not impacted
significantly by the Gulf of Mexico oil spill.
$ million
2011
2010
excluding
impacts of
Gulf of
Mexico oil
spill
2010
impacts of
Gulf of
Mexico oil
spill 2010 2009
Profit (loss) before taxation 38,834 36,110 (40,935) (4,825) 25,124
Tax charge (credit) on profit (loss) 12,737 11,393 (12,894) (1,501) 8,365
Effective tax rate 33% 32% 31% 31% 33%
% of profit or loss before taxation
UK statutory corporation tax rate 26 28 28 28 28
Increase (decrease) resulting from:
UK supplementary and overseas taxes at higher/lower rates 14 9 7 (4) 8
Tax reported in equity-accounted entities (3) (3) –23 (3)
Adjustments in respect of prior years (1) – – 2 1
Current year losses unrelieved –– – 1 –
Goodwill impairment –– – – 2
Tax incentives for investment (1) (1) – 9 (2)
Gulf of Mexico oil spill non-deductible costs ––(4) (30) –
Permanent differences relating to disposals (2) (1) –5–
Other –––(3) (1)
Effective tax rate 33 32 31 31 33
http://www.bp.com/downloads/taxation