Annual Report 2016

45A5A81B-4BAF-4723-BFB4-09983CA05A23 Created with sketchtool.

9. Income taxes

(a) Amounts recognised in income statement

30 March 2016
€’000
25 March 2015
€’000
Current tax:
Irish corporation tax1,6765,362
Overseas tax33
Adjustments in respect of prior years(848)156
Total current tax8315,521
Deferred tax Origination and reversal of temporary differences:
Property,plant and equipment - allowances(11)1,918
Investment property-capital gains2,414705
Derivatives(976)6,417
Release of pension obligations2,714112
Provisions, unutilised losses & other856(791)
Total deferred tax4,9978,361
Income tax expense on continuing operations5,82813,882

The tax expense on continuing operations excludes the income tax on the discontinued operation of €0.09 million (2015: €0.3 million). This has been included in the loss from discontinued operations, net of tax (see note 22).

(b) Reconciliation of effective tax rate

30 March 2016
€’000
25 March 2015
€’000
Profit on ordinary activities before tax22,21756,433
Tax using standard corporation tax rate in Ireland of 12.5% (2014:12.5%)2,7777,054
Tax effect of:
Depreciation and amortisation in excess of capital allowances(3,077)(2,118)
Impairments on tangible and intangible assets3,19630
Amortisation of intangible assets51427
Other non deductible expenses1501,172
Deferred tax not recognised-1,318
Deferred tax on derivatives(976)6,417
Deferred tax on reduction in pension liabilities2,714-
Deferred tax on investment property2,414705
Non-Taxable income on provision charges(525)(2,064)
Changes in estimates related to prior years(848)156
Utilisation of tax losses63-
Pension payments in excess of pension cost charge(1,308)-
Group relief15-
Ineligible depreciation1,1791,350
Impact of different tax rates3(565)
Income tax expense5,82813,882
Effective tax rate26%25%

(c) Movements in deferred tax balances

Balance at 26 March 2015Recognised in profit or lossRecognised in OCIRecognised in equityBalance at 30 March 2016
€’000€’000€’000€’000€’000
Deferred Tax assets
Defined benefit pensions7,828(2,714)(1,372)3,742
Property, plant and equipment - capital allowances3591--126
Provisions2,015(648)--1,367
Unutilised Losses634(313)--321
Deferred tax liabilities
Property, plant and equipment - capital allowances(8,720)(80)--(8,800)
Intangible assets(104)104---
Derivatives(6,110)-1,392-(4,718)
Investment property(705)(2,414)-(3,119)

The combined net deferred tax liability of €11.1 million is presented on the balance sheet.

Balance at 27 March 2014Recognised in profit or lossRecognised in OCIRecognised in equityBalance at 25 March 2015
€’000€’000€’000€’000€’000
Deferred tax Assets
Defined benefit pensions5,238(536)3,126-7,828
Derivatives862-(862)--
Property, plant and equipment - capital allowances378(343)--35
Provisions1,449566--2,015
Unutilised Losses121513--634
Deferred tax liabilities
Defined benefit pensions(424)424---
Property, plant and equipment - capital allowances(7,145)(1,575)--(8,720)
Intangible assets(243)139--(104)
Derivatives-(6,110)-(6,110)
Investment property-(705)--(705)

The combined net deferred tax liability of €5.1 million is presented on the balance sheet.

(d) Unrecognised deferred tax assets

The following deferred tax assets have not been recognised because it is not probable that future taxable profit will be available against which the Group can use the benefits therefrom:

30 March 2016
€’000
25 March 2015
€’000
27 March 2014
€’000
Deferred Tax Assets
Unused tax losses2,3683,6622,064

The losses are not time bound but subject to the respective trades returning to profitability.