Vodafone 2015 Annual Report Download - page 127

Tax on discontinued operations
2015 2014 2013
£m £m £m
Tax (credit)/charge on prot from ordinary activities of discontinued operations (57) 1,709 1,750
Tax charge relating to the gain or loss of discontinued operations – – –
Total tax (credit)/charge on discontinued operations (57) 1,709 1,750
Tax (credited)/charged directly to other comprehensive income
2015 2014 2013
£m £m £m
Current tax charge 2– 4
Deferred tax (credit)/charge (267) 23 (37)
Total tax (credited)/charged directly to other comprehensive income (265) 23 (33)
Tax (credited)/charged directly to equity
2015 2014 2013
£m £m £m
Current tax (credit)/charge (4) 12 (17)
Deferred tax credit (3) –(1)
Total tax (credited)/charged directly to equity (7) 12 (18)
Factors affecting the tax expense for the year
The table below explains the differences between the expected tax expense at the UK statutory tax rate of 21% (2014: 23% and 2013: 24%), and the
Group’s total tax expense for each year.
2015 2014 2013
£m £m £m
Continuing prot/(loss) before tax as shown in the consolidated income statement 1,095 (5,270) (3,483)
Expected income tax expense/(income) at UK statutory tax rate 230 (1,212) (836)
Effect of different statutory tax rates of overseas jurisdictions 138 (328) (9)
Impairment losses with no tax effect –1,958 2,664
Disposal of Group investments –211 (10)
Effect of taxation of associates and joint ventures, reported within operating prot 25 61 129
Recognition of deferred tax assets in Luxembourg and Germany1(5,468) (19,318) –
Tax charge on rationalisation and re-organisation of non-US assets prior to VZW disposal2–1,365 –
Deferred tax impact of previously unrecognised temporary differences including losses (40) (164) (625)
Current tax impact of previously unrecognised temporary differences including losses – – (74)
Effect of unrecognised temporary differences 342 215 (184)
Adjustments in respect of prior years (245) (43) (234)
Gain on acquisition of CWW with no tax effect – – (164)
Effect of secondary and irrecoverable taxes 66 37 94
Deferred tax on overseas earnings 38 4(4)
Effect of current year changes in statutory tax rates 118 158 (2)
Expenses not deductible for tax purposes and other items 148 210 104
Tax on income derived from discontinued operations –418 –
Exclude taxation of associates (117) (154) (373)
Income tax (income)/expense (4,765) (16,582) 476
Notes:
1 See commentary regarding deferred tax asset recognition on page 127.
2 Includes the US tax charge of £2,210 million on the rationalisation and reorganisation of non-US assets prior to the disposal of our interest in Verizon Wireless.
Overview Strategy review Performance Governance Financials Additional information Vodafone Group Plc
Annual Report 2015
125