(a) Analysis of expense/(credit) in year recognised in the Income Statement
2022 | 2021 | |
€m | €m | |
Current tax: | ||
Irish corporation tax | 2.3 | 2.3 |
Foreign corporation tax | 2.0 | (4.0) |
Adjustment in respect of previous years | (1.4) | (2.0) |
2.9 | (3.7) | |
Deferred tax: | ||
Irish | 0.5 | 0.6 |
Foreign | 2.2 | (14.2) |
Adjustment in respect of previous years | 3.1 | 0.2 |
Rate change impact | (0.1) | 0.3 |
5.7 | (13.1) | |
Total income tax expense/(credit) recognised in Income Statement | 8.6 | (16.8) |
Relating to continuing operations | ||
– continuing operations before exceptional items | 6.2 | (14.4) |
– continuing operations exceptional items | 2.4 | (2.4) |
Total | 8.6 | (16.8) |
The tax assessed for the year is different from that calculated at the standard rate of corporation tax in the Republic of Ireland, as explained below:
2022 | 2021 | |
€m | €m | |
Profit/(loss) before tax | 45.7 | (121.3) |
Less: Group’s share of equity accounted investments’ (profit)/loss after tax | (5.3) | 14.9 |
Adjusted profit/(loss) before tax | 40.4 | (106.4) |
Tax at standard rate of corporation tax in the Republic of Ireland of 12.5% | 5.1 | (13.3) |
Actual tax expense/(credit) is affected by the following: | ||
Expenses/(non-taxable income) not deductible for tax purposes | 1.7 | (4.8) |
Adjustments in respect of prior years | 1.7 | (1.8) |
Income taxed at rates other than the standard rate of tax | 5.8 | (4.1) |
Group relief (received)/surrendered | (4.4) | 0.5 |
Other | 0.2 | - |
(Recognition)/non-recognition of deferred tax assets | (1.5) | 6.7 |
Total income tax expense/(credit) | 8.6 | (16.8) |
(b) Deferred tax recognised directly in Other Comprehensive Income
2022 | 2021 | |
€m | €m | |
Deferred tax arising on revaluation of property, plant & machinery reflected in revaluation reserve | 0.6 | 0.2 |
Deferred tax arising on movement of retirement benefits | 4.3 | 1.6 |
Total deferred tax charge | 4.9 | 1.8 |
(c) Factors that may affect future charges
Future income tax charges may be impacted by changes to the corporation tax rates and/or changes to corporation tax legislation in force in the jurisdictions in which the Group operates. Under Finance Act 2021, the current UK corporation tax of 19% will increase to 25% from 1 April 2023. It is expected that Ireland will enact a minimum corporation tax rate of 15%, for groups with annual consolidated revenue in excess of €750m, towards the end of 2022 or the start of 2023. The Group is actively monitoring these developments.