Notes to the Financial Statements
for the year ended 31 December 2004
15 Tax On Profit On Ordinary Activities
| Rm | ||
| 15(a) Technical account long term business | Year to 31 December 2004 |
Year to 31 December 2003 |
| Current tax | ||
| South Africa | 2,490 |
2,000 |
| United States | 130 |
49 |
| Rest of World | 12 |
37 |
2,632 |
2,086 |
|
472 |
716 |
|
| Deferred tax | 3,104 |
2,802 |
| Rm | ||
| 15(b) Non-technical account insurance, asset management and banking businesses | Year to 31 December 2004 |
Year to 31 December 2003 |
| United Kingdom tax | ||
| UK corporation tax | 602 |
420 |
| Double tax relief | (555) |
(296) |
47 |
124 |
|
| Overseas tax | ||
| South Africa | 849 |
408 |
| United States | 136 |
|
| Rest of World | 59 |
49 |
| Secondary tax on companies (STC) | 118 |
173 |
1,026 |
766 |
|
| Adjustment in respect of prior periods | 12 |
(99) |
| Current tax for the year | 1,085 |
791 |
| Current tax attributable to shareholders profits on long term business | 1,911 |
1,568 |
| Total current tax on ordinary activities | 2,996 |
2,359 |
| Deferred tax non-technical account | (94) |
(99) |
| Deferred tax attributable to shareholders profits on long term business | 472 |
716 |
| Reported tax charge | 3,374 |
2,976 |
| The reported tax charge is analysed as follows: | ||
| Adjusted operating profit | 2,834 |
2,763 |
| Restructuring and integration costs | (71) |
(74) |
| Change in credit provisioning methodology | (332) |
|
| Short term fluctuations in investment return | 708 |
609 |
| Fines and penalties | (97) |
|
3,374 |
2,976 |
| Rm | ||
| 15(c) Reconciliation of tax charge | Year to 31 December 2004 |
Year to 31 December 2003 |
| Tax at UK rate of 30.0% (2003: 30.0%) on profit on ordinary activities before tax | 3,088 |
1,644 |
| Untaxed and low taxed income (including tax exempt investment return) | (979) |
(1,395) |
| Disallowable expenditure | 1,144 |
2,210 |
| STC | 118 |
173 |
| Timing differences | (378) |
(617) |
| Other | 3 |
344 |
| Current tax charge | 2,996 |
2,359 |
