| Year ended 2 January 2010 $ million |
Year ended 3 January 2009 $ million |
Year ended 29 December 2007 $ million |
|
|---|---|---|---|
| Current tax | |||
| UK corporation tax on profits for the period | 0.3 | (13.7) | 2.2 |
| Adjustments in respect of prior periods | 0.4 | 0.3 | – |
| Total UK tax | 0.7 | (13.4) | 2.2 |
| Overseas tax on profits for the period | 17.2 | 51.2 | 109.5 |
| Increase/(decrease) in provision for uncertain tax positions | 15.8 | (3.2) | (4.0) |
| Adjustments in respect of prior periods | 8.0 | 2.6 | (8.2) |
| Total overseas tax | 41.0 | 50.6 | 97.3 |
| Total current tax | 41.7 | 37.2 | 99.5 |
| Deferred tax | |||
| Origination or reversal of temporary differences | (24.8) | (108.2) | (128.1) |
| Utilisation of previously unrecognised tax losses | (36.9) | (4.7) | (9.8) |
| Tax losses in the period not recognised | 49.6 | 111.4 | 187.5 |
| Other changes in unrecognised deferred tax assets | (1.2) | 3.2 | 5.6 |
| Adjustments in respect of prior periods | (0.4) | (0.5) | (4.2) |
| Total deferred tax | (13.7) | 1.2 | 51.0 |
| Income tax expense for the period | 28.0 | 38.4 | 150.5 |
| Continuing operations | 28.5 | 38.4 | 139.9 |
| Discontinued operations (see note 13) | (0.5) | – | 10.6 |
| 28.0 | 38.4 | 150.5 | |
The income tax expense for the period recognised in profit or loss differs from the product of the (loss)/profit before tax for the period and the rate of UK corporation tax as follows:
| Year ended 2 January 2010 $ million |
Year ended 3 January 2009 $ million |
Year ended 29 December 2007 $ million |
|
|---|---|---|---|
| Profit/(loss) before tax: | |||
| – Continuing operations | 38.4 | (8.1) | 525.1 |
| – Discontinued operations | (4.4) | – | (56.1) |
| 34.0 | (8.1) | 469.0 | |
| UK corporation tax at 28% (2008: 28.5%; 2007: 30%) on profit/(loss) | 9.5 | (2.3) | 140.7 |
| Permanent differences | (3.3) | (48.7) | (3.4) |
| Adjustment in respect of prior periods | 8.0 | 2.4 | (12.4) |
| Increase/(decrease) in provisions for uncertain tax positions | 15.8 | (3.2) | (4.0) |
| Effect of different tax rates on overseas profits | (11.5) | (7.1) | 20.6 |
| Foreign tax credits | (4.1) | (13.3) | (13.8) |
| Temporary differences on investment in subsidiaries | 2.1 | 0.5 | (160.7) |
| Tax losses in the period not recognised | 49.6 | 111.4 | 187.5 |
| Utilisation of previously unrecognised tax losses | (36.9) | (4.7) | (9.8) |
| Other changes in unrecognised deferred tax assets | (1.2) | 3.4 | 5.8 |
| Income tax expense for the period | 28.0 | 38.4 | 150.5 |
In 2009, deferred tax assets of $49.6 million (2008: $111.4 million, 2007: $26.8 million) were not recognised on tax losses carried forward because it was not considered probable that the taxable entities concerned would generate sufficient taxable profits in the foreseeable future against which the losses may be utilised. Also in 2009, the provision for uncertain tax positions increased by $15.8 million, principally due to an extension of the period available to the tax authorities of certain jurisdictions in which to assess tax payable in prior years.
Permanent differences arising in 2008 principally comprised a tax benefit of $115.8 million on currency translation losses that were not recognised in the accounts but were deductible for tax purposes, less the tax effect of $69.4 million on expenses that were recognised in the accounts but were not deductible for tax purposes (in particular, the tax effect of $45.4 million attributable to the impairment of goodwill).
In 2007, a deferred tax asset was not recognised in respect of losses amounting to $160.7 million that related to investments in subsidiaries that were held for sale because there were insufficient available capital gains against which the losses could be utilised.
| Year ended 2 January 2010 $ million |
Year ended 3 January 2009 $ million |
Year ended 29 December 2007 $ million |
|
|---|---|---|---|
| Income tax on items recognised in other comprehensive income | |||
| Loss/(gain) on net investment hedges | 0.6 | 16.8 | (2.1) |
| Net actuarial (loss)/gain | (27.0) | (30.2) | 15.0 |
| Available-for-sale investments: | |||
| – Gain/(loss) arising in the period | 0.1 | (0.4) | (0.3) |
| – Reclassification to profit or loss of gain on investments sold | – | (0.5) | (0.2) |
| (26.3) | (14.3) | 12.4 | |
| Income tax on items recognised directly in equity | |||
| Share-based incentives | (0.9) | – | 0.2 |
| Income tax (benefit)/expense recognised outside profit or loss | (27.2) | (14.3) | 12.6 |