directors report and accounts 2006 - Effective tax rate - subsidaries


 Effective tax rate - subsidaries

Underlying tax rate - subsidiaries

The tax rates in the income statement of 25.9 per cent in 2006 and 26.7 per cent in 2005 are affected by the inclusion of the share of associates’ post-tax profit in the Group’s pre-tax results.

The underlying tax rate for subsidiaries, adjusted to remove the distortions as reflected in the adjusted earnings per share below, was 29.6 per cent in 2006 and 31.4 per cent in 2005; the decrease reflects the inclusion of a tax credit in Canada in respect of prior years and changes in the mix of profits.

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