Vodafone 2002 Annual Report Download - page 92

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Vodafone Group Plc Annual Report & Accounts and Form 20-F Notes to the Consolidated Financial Statements90
Notes to the Consolidated Financial Statements continued
Differences between UK statutory tax charge and the Group’s standard and effective tax charge
(a) Reconciliation of expected tax charge using the UK statutory tax rate to the actual tax charge
The differences between the Group’s expected tax charge, using the UK corporation tax rate of 30% in 2002, 2001 and 2000 and the Group’s tax charge for
each of those years were as follows:
2002 2001 2000
£m £m £m
Expected tax (credit)/charge at UK corporation tax rate on (loss)/profit on ordinary activities (4,062) (2,426) 405
Amortisation of goodwill 4,041 3,562 514
Exceptional non-operating items 258 (24) (287)
Exceptional operating items 1,622 96 9
Expected tax charge at UK corporation tax rate pre goodwill and exceptional items 1,859 1,208 641
Permanent differences 126 403 (36)
Excess tax depreciation over book depreciation 626 24
Short term timing differences 12 (2) (1)
Loss forward utilised/current year losses for which no credit taken 385 261 62
Prior year adjustments (79) (44) (4)
Net undercharge relating to international associated undertakings –(56) (74)
Non taxable profits/non deductible losses (392) (482) (85)
International corporate tax rate differentials and other 294 167 89
Actual total tax charge (excluding tax on exceptional items) 2,211 1,481 616
(b) Reconciliation of expected tax charge using the standard tax rate to the actual current tax charge
The differences between the Group’s expected tax charge, using the Group’s standard corporation tax rate of 37.2% in 2002 and 2001 and 35.5% in 2000,
comprising the average rates of tax payable across the Group and weighted in proportion to accounting profits, and the Group’s current tax charge for each
of those years were as follows:
2002 2001 2000
£m £m £m
Expected tax (credit)/charge at standard tax rate on (loss)/profit on ordinary activities (5,037) (3,008) 479
Amortisation of goodwill 5,011 4,417 608
Exceptional non-operating items 320 (30) (339)
Exceptional operating items 2,012 119 11
Expected tax charge at standard tax rate on profit on ordinary activities before goodwill and
exceptional items 2,306 1,498 759
Permanent differences 111 386 (43)
Excess tax depreciation over book depreciation (423) (131) (44)
Short term timing differences (559) (215) 207
Deferred tax on overseas earnings (491) (79) (5)
Loss forward utilised/current year losses for which no credit taken 415 264 38
Prior year adjustments (92) (43) (5)
Non taxable profits/non deductible losses (392) (482) (88)
International corporate tax rate differentials and other (153) (98) (27)
Actual current tax charge (excluding tax on exceptional items) 722 1,100 792
At 31 March 2002, the Group had the following trading and non-trading losses available for carry forward. These losses are available for offset against future
trading and non-trading profits of certain Group, joint venture and associated undertakings:
£m
UK subsidiaries’ trading and non-trading losses 122
International subsidiaries’ trading and non-trading losses 2,212
Share of joint venture losses 105
Share of international associated undertakings’ trading and non-trading losses 109