13. Tax Charge
| Group | Note | 2014 €’000 |
2013 €’000 |
|---|---|---|---|
| Current tax | |||
| Irish corporation tax |
(2) | (35) | |
| Deferred tax | |||
| On fair value gains / (losses) on derivatives | 40,495 | (28,942) | |
| On unutilised tax losses forward | 27 | (92,568) | (40,825) |
| Total deferred tax recognised in income statement | (52,073) | (69,767) | |
| Total tax charge | (52,075) | (69,802) |
The reconciliation of tax on profit at the relevant Irish corporation rate to the Group’s actual tax charge for the year is as follows:
Reconciliation of tax on profits| Group | 2014 €’000 |
2013 €’000 |
|---|---|---|
| Profit before tax | 510,355 | 283,404 |
| Tax calculated at a tax rate of 25% | 127,589 | 70,851 |
Effect of: |
||
| Non-deductible derivative movements | - | (26,090) |
| Deductible derivative movements | 29,912 | - |
| Tax on interest income | (31) | (31) |
| Non-deductible (income) / expenses | (64,218) | 141 |
| Utilised tax losses forward | (93,212) | (44,836) |
| Movement in deferred tax (liability) / asset recognised | (40,495) | 28,942 |
| Movement in deferred tax recognised on tax losses | 92,568 | 40,825 |
| Refund in respect of the prior year | (38) | - |
| Taxation (credit) / charge | 52,075 | 69,802 |
The current tax charge of €0.002m (2013: €0.04m) arises on the profits earned by 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% with the exception of NAMAIL, where the applicable tax rate is 12.5%.
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.