HSBC 2013 Annual Report Download - page 86

HSBC BANK CANADA
84
6 Tax expense (continued)
The amount of deferred taxation accounted for in the statement of financial position comprised the following deferred
tax assets and liabilities:
2013
$m
2012
$m
Deferred tax assets
Retirement benefits .................................................................................................. 72 86
Loan impairment allowances ................................................................................... 33 54
Unused tax credits .................................................................................................... –7
Assets leased to customers ....................................................................................... (71) (66)
Property, plant and equipment ................................................................................. (1) (2)
Share-based payments .............................................................................................. 57
Relief for tax losses carried forward ........................................................................ 40 27
Other temporary differences .................................................................................... 42 25
120 138
Deferred tax liabilities
Cash ow hedges ..................................................................................................... (1) (1)
Net deferred tax asset ..................................................................................................... 119 137
The amount of temporary differences for which no deferred tax asset is recognized in the statement of financial position
is $4m (2012: $4m). This amount is in respect of capital losses where the recoverability of potential benefits is not
considered likely. The entire amount has no expiry date.
Deferred tax is not recognized in respect of the bank’s investments in subsidiaries where remittance of retained earning is
not contemplated, and for those associates where it has been determined that no additional tax will arise. The aggregate
amount of temporary differences associated with investments where no deferred tax liability is recognized is $481m
(2012: $381m).
On the evidence available, including management’s updated analysis and projection of income, there will be sufficient
taxable income generated by the bank to support the recognition of its net deferred tax asset.
7 Dividends
Dividends on our shares declared and paid, and distributions per unit on our HSBC HaTS™ in each of the last two years
were as follows:
2013 2012
$per share/
unit $m
$per share/
unit $m
Common Shares .......................................................... 360 330
Preferred Shares Class 1
Series C ................................................................. 1.275 9 1.275 9
Series D ................................................................. 1.250 9 1.250 9
Series E ................................................................. 1.650 16 1.650 16
Preferred Shares Class 2
Series B1 ................................................................ 0.310 27 0.310 27
HSBC HaTS™
Series 2015 ............................................................ 51.50 10 51.50 10
1 Preferred shares – Class 2, Series B were redeemed on 27 December 2013.
Notes on the Consolidated Financial Statements (continued)
HSBC BANK CANADA