RBS 2007 Annual Report Download - page 145

143
RBS Group • Annual Report and Accounts 2007
Financial statements
4 Auditors’ remuneration
Amounts paid to the company’s auditors for statutory audit and other services were as follows:
Group
2007 2006
£m £m
Fees payable for the audit of the Group’s annual accounts 1.2 0.8
Fees payable to the auditors and their associates for other services to the Group:
– The audit of the company’s subsidiaries pursuant to legislation(1) 15.8 10.8
Total audit fees 17.0 11.6
– Other services pursuant to legislation (2) 4.9 5.9
– Other services relating to taxation 0.4 0.2
– Services relating to corporate finance transactions, including securitisations, entered into by the Group 5.5 2.4
– All other services 3.4 2.6
Total non-audit fees 14.2 11.1
Fees payable to the auditors and their associates in respect of pension schemes:
– Audit 0.2 0.3
Total 31.4 23.0
Notes:
(1) Excluding fees paid in respect of ABN AMRO Holding B.V. which is audited by another firm.
(2) Includes fees for work relating to Section 404 of the US Sarbanes-Oxley Act.
5Tax
Group
2007 2006 2005
£m £m £m
Current taxation:
Charge for the year 2,522 2,626 2,280
Over provision in respect of prior periods (39) (253) (101)
Relief for overseas taxation (198) (147) (171)
2,285 2,226 2,008
Deferred taxation:
Charge for the year 95 396 477
(Under)/over provision in respect of prior periods (328) 67 (107)
Tax charge for the year 2,052 2,689 2,378
The actual tax charge differs from the expected tax charge computed by applying the standard rate of UK corporation tax
of 30% as follows:
2007 2006 2005
£m £m £m
Expected tax charge 2,970 2,756 2,381
Non-deductible items 263 288 309
Non-taxable items (595) (251) (166)
Taxable foreign exchange movements 16 5 (10)
Foreign profits taxed at other rates (37) 63 77
Reduction in deferred tax liability following change in the rate of UK Corporation Tax (189) ——
Unutilised losses brought forward and carried forward (9) 14 (5)
Adjustments in respect of prior periods (367) (186) (208)
Actual tax charge 2,052 2,689 2,378
The effective tax rate for the year was 20.7% (2006 – 29.3%; 2005 – 30.0%). The tax rate benefited from a reduction of £189 million in the
Group’s deferred tax liability following the change in the rate of UK Corporation Tax from 30% to 28% from 1 April 2008.