International Consolidated Airlines Group, S.A. – Annual report – 31 December 2021
Industry: airline
10 Tax (extract)
a Tax credits/(charges)
Tax credits/(charges) recognised in the Income statement, Other comprehensive income and directly in equity:
1 Refer to notes 2 and 36 for the change in accounting policy relating to pension administration costs.
The current tax credit in Other comprehensive income relates to the fair value movements on the convertible bond of €5 million (2020: €nil) and cash flow hedges of €nil (2020: €17 million).
Tax recognised directly in equity relates to share-based payment schemes of €1 million (2020: €2 million).
Within tax in Other comprehensive income is a tax charge of €123 million (2020: tax credit of €92 million) that may be reclassified to the Income statement and a tax charge of €231 million (2020: tax credit of €59 million) that will not.
b Current tax (liability)/asset
1 During 2020 the Group elected, in the UK, to carry back losses and apply them to the 2019 taxable profits. This led to a €152 million corporate tax overpayment in relation to 2019, which HMRC offset against deferred liabilities arising in relation to other taxes. No such offset arose in 2021.
c Deferred tax asset/(liability)
1 Refer to notes 2 and 36 for the change in accounting policy relating to pension administration costs.
2 Fair value gains/losses include both the Cash flow hedge reserve and the Cost of hedging reserve, of which the movement in relation to Other comprehensive income recognised in the Cash flow hedge reserve for 2021 was €142 million (refer to note 28d).
3 Movements in Other comprehensive income relating to post-employment benefit obligations increase the Group’s tax losses by €20 million (tax value) at December 31, 2021 and have therefore been disclosed as tax loss carried forward and tax credits in the above table.
The deferred tax assets mainly arise in Spain and the UK and are expected to reverse beyond one year. Recognition of the deferred tax assets is supported by the expected reversal of deferred tax liabilities in corresponding periods, and projections of operating performance laid out in the management approved business plans.
Accounts examples 