Vodafone 2004 Annual Report Download - page 84

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Vodafone Group Plc Annual Report 2004
82
Notes to the Consolidated Financial Statements continued
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 2004, 2003 and 2002 and the Group’s tax charge for
each of those years were as follows:
2004 2003 2002
£m £m £m
Expected tax credit at UK corporation tax rate on loss on ordinary activities (1,514) (1,863) (4,062)
Goodwill amortisation 4,562 4,217 4,041
Exceptional non-operating items 31 2 258
Exceptional operating items (69) 173 1,622
Expected tax charge at UK corporation tax rate, before goodwill amortisation and exceptional items 3,010 2,529 1,859
Permanent differences 152 165 126
Excess tax depreciation over book depreciation (21) (40) 6
Short term timing differences (64) 60 12
Losses carried forward utilised/current year losses for which no credit taken (26) 161 385
Prior year adjustments (61) (9) (79)
Net (over)/under charge relating to international associated undertakings (186) 8 –
Non taxable profits/non deductible losses (281) (239) (392)
International corporate tax rate differentials and other 527 358 294
Actual total tax charge (excluding tax on exceptional items) 3,050 2,993 2,211
Factors affecting the tax charge in future years
Factors that may affect the Group’s future tax charge include the absence of one-off restructuring benefits, the resolution of open issues, future planning
opportunities, corporate acquisitions and disposals, changes in tax legislation and rates, and the use of brought forward tax losses.
At 31 March 2004, 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 and associated undertakings:
£m
UK subsidiaries’ trading and non-trading losses 166
International subsidiaries’ trading and non-trading losses 37,932
The losses in respect of international subsidiaries include amounts of £30,728 million (2003: £34,142 million) that have arisen in overseas holding companies
as a result of revaluations of those companies’ investments for local GAAP purposes. Since it is uncertain whether or not these losses will be utilised, no
deferred tax asset has been recognised. See Note 21.
9. Equity dividends
2004 2003 2002
Pence per Pence per Pence per
2004 ordinary 2003 ordinary 2002 ordinary
£m share £m share £m share
Interim dividend paid 650 0.9535 542 0.7946 492 0.7224
Proposed final dividend 728 1.0780 612 0.8983 511 0.7497
Additional final dividend payable
in respect of the year ended
31 March 2001 ––––22 –
1,378 2.0315 1,154 1.6929 1,025 1.4721
8. Tax on loss on ordinary activities continued