Annual Report Uniphar_Accounts_2016 | Page 60

Notes to the Financial Statements Notes to the Financial Statements continued 9 Income tax expense/(credit) continued 2016 €’000 2015 €’000 608 324 14 115 622 439 Recognised in the Income Statement: Current income tax Republic of Ireland United Kingdom Total current income tax expense 10 Result for the financial year The profit recorded in the financial statements of the Company for the year ended 31 December 2016 was €20,618,000 (2015: profit €2,632,000). As permitted by Section 340(2) of the Companies Act 2014, the Income Statement of the Company has not been separately presented in the financial statements. 11 Dividends Dividends paid during the year of €3,000 relate to payments made by subsidiary undertaking, Aegis Distributors Limited, to non-controlling interests on the conclusion of its Members Voluntary Liquidation on 14 December 2016. The prior year amount of €53,000 related to payments made by subsidiary undertaking, IPOS Holding 126 Limited to non-controlling interests. 12 Intangible assets Deferred tax Origination and reversal of temporary differences: Property, plant and equipment Employee benefits 130 (279) (10) (5) Future loss utilisation 578 (823) Total deferred tax expense/(credit) 698 (1,107) 1,320 (668) Total income tax expense/(credit) Continuing operations Discontinued operations At 1 January 2015 Adjustment to provisional fair values Acquisitions (690) 130 22 1,320 (668) €’000 €’000 21,082 392 50,799 72,273 - - 62 62 128 - 7,528 7,656 2,834 348 - 3,182 - (2,636) (2,636) 740 55,753 80,537 At 1 January 2016 24,044 740 55,753 80,537 (3) - (921) (924) - - 101 101 - - 24,992 24,922 2,712 5 - 2,717 Foreign exchange movements Additions (note 35) 2015 €’000 €’000 - Acquisitions (note 35) 2016 €’000 Total 24,044 Adjustment to provisional fair values (note 35) Factors effecting the tax charge in future years The UK statutory corporation tax rate of 20% will be progressively reduced to 17% by 1 April 2020. Goodwill At 31 December 2015 Disposals 1,190 Trademark Cost Additions The total income tax expense/(credit) for the financial year is analysed as follows: Computer software €’000 Disposals (note 8) At 31 December 2016 - (13) (4,840) (4,853) 26,753 732 75,015 102,500 14,005 - 3,511 17,516 2,813 - - 2,813 Reconciliation of effective tax rate Amortisation Profit on ordinary activities before tax 6,131 5,432 At 1 January 2015 Amortisation of computer software Profit on ordinary activities multiplied by standard rate of corporation tax in the Republic of Ireland of 12.5% Effects of Disallowable expenses Impairment provision Income liable to tax at 25% Higher UK corporation tax rates Income not taxable 766 679 Provision for impairment - - 1,402 1,402 Disposals - - (2,008) (2,008) At 31 December 2015 16,818 - 2,905 19,723 16,818 - 2,905 19,723 3,022 - - 3,022 789 338 At 1 January 2016 1,076 575 Amortisation of computer software 21 14 Provision for impairment - - 3,440 3,440 4 43 Impairment on disposal - - 16,507 16,507 (1,090) (121) Disposals - - (2,084) (2,084) 19,840 - 20,768 40,608 Losses utilised in reducing current income tax (804) (1,028) Available losses to increase/(reduce) future income tax 578 (823) Tax base asset adjustments in respect of prior years (22) (345) 2 - At 31 December 2015 7,226 740 52,848 60,814 1,320 (668) At 31 December 2016 6,913 732 54,247 61,892 Underprovision of corporation tax in prior year Total tax expense/(credit) for the year 58 | Annual Report 2016 At 31 December 2016 Net book amounts Annual Report 2016 | 59