(a) Analysis of (credit)/expense in year recognised in the Income Statement
2021 | 2020 | |
€m | €m | |
Current tax: | ||
Irish corporation tax | 2.3 | 2.2 |
Foreign corporation tax | (4.0) | 9.6 |
Adjustment in respect of previous years | (2.0) | (2.7) |
(3.7) | 9.1 | |
Deferred tax: | ||
Irish | 0.6 | 0.6 |
Foreign | (14.2) | (7.2) |
Adjustment in respect of previous years | 0.2 | - |
Rate change impact | 0.3 | - |
(13.1) | (6.6) | |
Total income tax (credit)/expense recognised in Income Statement | (16.8) | 2.5 |
Relating to continuing operations | ||
– continuing operations before exceptional items | (14.4) | 12.3 |
– continuing operations exceptional items | (2.4) | (9.8) |
Total | (16.8) | 2.5 |
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:
2021 | 2020 | |
€m | €m | |
(Loss)/profit before tax | (121.3) | 11.6 |
Less: Group’s share of equity accounted investments’ loss/(profit) after tax | 14.9 | (0.7) |
Adjusted (loss)/profit before tax | (106.4) | 10.9 |
Tax at standard rate of corporation tax in the Republic of Ireland of 12.5% | (13.3) | 1.4 |
Actual tax (credit)/expense is affected by the following: | ||
(Non-taxable income)/expenses not deductible for tax purposes | (4.8) | 10.8 |
Adjustments in respect of prior years | (1.8) | (2.7) |
Income taxed at rates other than the standard rate of tax | (4.1) | (3.1) |
Other differences | 0.5 | (4.1) |
Non-recognition of deferred tax assets | 6.7 | 0.2 |
Total income tax (credit)/expense | (16.8) | 2.5 |
(b) Deferred tax recognised directly in Other Comprehensive Income
2021 | 2020 | |
€m | €m | |
Deferred tax arising on movement of derivatives designated as cash flow hedges | - | 0.3 |
Deferred tax arising on revaluation of property, plant & machinery reflected in revaluation reserve | 0.2 | 0.1 |
Deferred tax arising on movement of retirement benefits | 1.6 | (0.7) |
Total | 1.8 | (0.3) |
(c) Factors that may affect future charges
Future income tax charges may be impacted by changes to the corporation tax rates, for example the proposed but un-enacted UK corporation tax rate of 25% (increased from 20%) due to come into effect on 1 April 2023, and/or changes to corporation tax legislation in force in the jurisdictions in which the Group operates.