10. Taxation
(a) Tax expense included in Profit and Loss
2018 | 2017 | |
€’000 | €’000 | |
Current tax: | ||
Based on Port activity profits for the year: | ||
Corporation Tax at an effective rate of 12.5% (2017:12.5%) | (5,542) | (4,136) |
Based on non-Port activity profits | ||
Corporation Tax at an effective rate of 25% (2017:25%) | (349) | (391) |
(5,891) | (4,527) | |
Adjustments in respect of prior periods | 2 | - |
Total current tax | (5,889) | (4,527) |
Deferred tax: | ||
Timing differences between pension contributions paid and pensions charged | (27) | (580) |
Timing differences on accelerated Capital Allowances | (416) | (653) |
Origination and reversal of other timing differences | - | (18) |
Over provision in prior year | (2) | 9 |
Total deferred tax | (445) | (1,242) |
Total tax charge | (6,334) | (5,769) |
(b) Tax expense included in other Comprehensive Income | ||
Deferred tax | ||
- Deferred tax related to defined benefit pension re-measurement gain | (297) | (4,357) |
Total tax expense included in other Comprehensive Income | (297) | (4,357) |
(c) Reconciliation of tax charge
The total Corporation Tax charge for the financial year is lower (2017: lower) than the total tax charge that would result from applying the standard rate of Irish Corporation Tax to profit on ordinary activities. The differences are explained below:
2018 | 2017 | |
€’000 | €’000 | |
Profit on Ordinary Activities Before Tax | 47,855 | 46,344 |
Profit on ordinary activities multiplied by the average rate of | ||
Irish Corporation Tax for the year of 12.5% (2017:12.5%) | (5,982) | (5,793) |
Effects of: | ||
Disallowable expenses | (252) | (27) |
Non-taxable income | 75 | 238 |
Passive income liable to tax at 25% | (175) | (196) |
Adjustment to tax charge in respect of prior year | - | 9 |
Total tax charge for the year | (6,334) | (5,769) |
