IAS 12 para 81(f), temporary differences in subsidiaries, associates and joint ventures for which no deferred tax provided

Diageo plc – Annual report – 30 June 2018

Industry: food and drink

  1. Taxation (extract)

(f) Unrecognised deferred tax liabilities

UK legislation largely exempts overseas dividends remitted from UK tax. A tax liability is more likely to arise in respect of withholding taxes levied by the overseas jurisdiction. Deferred tax is provided where there is an intention to distribute earnings, and a tax liability arises. It is impractical to estimate the amount of unrecognised deferred tax liabilities in respect of these unremitted earnings.

The aggregate amount of temporary differences in respect of investments in subsidiaries, branches, interests in associates and joint ventures for which deferred tax liabilities have not been recognised is approximately £12 billion (2017 – £13.7 billion).

 

 

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