UNBOUNCE - EXAMPLE PAGE-REPORT-ENTERPRISE DOCUMENT-KINGSPAN - Flipbook - Page 148
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2021 (continued)
7
Income Tax Expense
2021
€m
Tax recognised in the Consolidated Income Statement
Current taxation:
Current tax expense
Adjustment in respect of prior years
Deferred taxation:
Origination and reversal of temporary differences
Effect of rate change
Income tax expense
2020
€m
129.3
1.1
130.4
85.0
(5.4)
79.6
(14.7)
2.7
(12.0)
(6.8)
2.1
(4.7)
118.4
74.9
The following table reconciles the applicable Republic of Ireland statutory tax rate to the effective tax rate (current and deferred) of
the Group:
Profit for the year
Applicable notional tax charge (12.5%)
Expenses not deductible for tax purposes
Net effect of differing tax rates
Utilisation of unprovided deferred tax assets
Other items
Total income tax expense
2021
€m
2020
€m
689.0
459.7
86.1
57.5
17.5
27.3
(1.9)
(10.6)
118.4
10.8
16.3
(1.1)
(8.6)
74.9
The total tax charge in future periods will be affected by any changes to the corporation tax rates in force in the countries in which the
Group operates. Changes in the geographical mix of future earnings will also impact the total tax charge.
The methodology used to determine the recognition and measurement of uncertain tax positions is set out in Note 1 ‘Statement of
Accounting Policies’.
The total value of deductible temporary differences which have not been recognised is €23.7m (2020: €31.6m) consisting mainly of tax
losses forward. €0.3m (2020: €0.5m) of the losses expire within 5 years while all other losses may be carried forward indefinitely.
No provision has been made for tax in respect of temporary differences arising from unremitted earnings of foreign operations as there
is no commitment to remit such earnings and no current plans to do so. Deferred tax liabilities of €16.1m (2020: €12.1m) have not been
recognised for withholding tax that would be payable on unremitted earnings of €322.2m (2020: €242.9m) in certain subsidiaries.
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