IAS 12, IAS 7 additional information reconciling tax charge to cash tax paid

InterContinental Hotels Group PLC – Annual report – 31 December 2017

Industry: leisure 

  1. Tax (extract)

Tax paid

Total net tax paid during the year of $172m (2016: $130m, 2015: $110m) comprises $147m (2016: $130m, 2015: $109m) paid in respect of operating activities and $25m (2016: $nil, 2015: $1m) paid in respect of investing activities. A reconciliation of tax paid to the total tax charge in the income statement follows:

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a Tax contingency movements are included within the current tax charge but do not impact cash tax paid in the year.

b The timing difference in 2016 was predominantly in respect of the US where the payment regulations resulted in a large overpayment in the year.

c Calculated as total cash paid divided by total accounting profit before tax.

The cash tax rate of 8% for 2015 is low owing to the impact of exceptional accounting gains taxable on a deferred basis, without which the rate would have been 20% and thus broadly consistent with the cash tax rates for 2016 and 2017.

 

 

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