NOTE 12. TAX (CHARGE) / CREDIT
| Group | 2012 €'000 |
2011 €'000 |
|---|---|---|
| Current tax | ||
| Irish corporation tax | (450) | (1,561) |
| Deferred tax | ||
| On fair value gains and losses on derivatives | 26,424 | 1,135 |
| On unutilised tax losses forward (Note 26) | (102,240) | 235,634 |
| Total deferred tax recognised in the income statement | (75,816) | 236,769 |
| Total taxation (charge) / credit | (76,266) | 235,208 |
The reconciliation of tax on profit at the relevant Irish corporation rate to the Group's actual tax (charge)/credit for the year is as follows:
| Reconciliation of tax on profits Group |
2012 €'000 |
2011 €'000 |
|---|---|---|
| Profit before tax | 308,219 | 11,340 |
| Tax calculated at a tax rate of 25% | 77,055 | 2,835 |
| Effect of: | ||
| Non-deductible derivative movements | 24,912 | 66,830 |
| Tax on interest income | 450 | 1,561 |
| Non-deductible expenses | 273 | 354 |
| Utilised tax losses forward | (102,240) | (70,019) |
| Additional deferred tax liability recognised | (26,424) | (1,135) |
| Movement in deferred tax recognised on tax losses | 102,240 | (235,634) |
| Taxation charge / (credit) | 76,266 | (235,208) |
The current tax charge of €0.45m (2011: €1.56m) arises on the profits earned by NAMAIL. A total amount of €0.6m (2011: €1.4m) was paid to the Revenue Commissioners in the period which relates to 12.5% of the profits arising in NAMAIL. No other tax charges arose in other NAMA Group entities and the Agency is exempt from Irish income tax, corporation tax and capital gains tax.
The corporation tax rate applicable to the majority of the Group's income is 25%. The corporation tax rate applicable to the majority of the income of subsidiaries is either 12.5% or 25%. The effective corporation tax rate for 2012 was 0% (2011: 0%).
The Group and Agency have no tax-related contingent liabilities and contingent assets in accordance with IAS 37, Provisions, Contingent Liabilities and Contingent Assets. No significant effects arise from changes in tax rates or tax laws after the reporting period.