Income Tax Expense

12 Months Ended

Dec. 31, 2021

10. Income Tax Expense


Recognised within the Consolidated Income Statement Continuing operations	2021 $m		2020 $m		2019 $m
(a) Current tax
Republic of Ireland		15		23		20
Overseas		603		571		385
Total current tax expense		618		594		405

(b) Deferred tax
Origination and reversal of temporary differences:
Retirement benefit obligations		2		(9)		(1)
Share-based payment expense		(6)		(3)		(6)
Derivative financial instruments		2		-		2
Other items		105		(83)		134
Total deferred tax expense/(income)		103		(95)		129

Income tax reported in the Consolidated Income Statement		721		499		534


Recognised outside the Consolidated Income Statement
(a) Within the Consolidated Statement of Comprehensive Income:
Deferred tax - retirement benefit obligations	(36)	11	(4)
Deferred tax - cash flow hedges	(8)	-	(4)
	(44)	11	(8)
(b) Within the Consolidated Statement of Changes in Equity:

Current tax
Current tax - share option exercises	14	2	5

Deferred tax
Deferred tax - share-based payment expense	10	(1)	6
	24	1	11

Income tax recognised outside the Consolidated Income Statement	(20)	12	3


	2021		2020		2019
Reconciliation of applicable tax rate to effective tax rate
Continuing operations
Profit before tax ($m)		3,342		1,664		2,181
Tax charge expressed as a percentage of profit before tax (effective tax rate):
- current tax expense only		18.5%		35.7%		18.6%
- total income tax expense (current and deferred)		21.6%		30.0%		24.5%

The following table reconciles the applicable Republic of Ireland statutory tax rate to the effective tax rate (current and deferred) of the Group:


	% of profit before tax
Irish corporation tax rate		12.5	12.5	12.5
Higher tax rates on overseas earnings		9.8	10.6	12.8
Other items
- arising from 2020 impairment		-	8.4	-
- other items (primarily comprising items not chargeable to tax/expenses not deductible for tax)		(0.7)	(1.5)	(0.8)
Total effective tax rate		21.6	30.0	24.5

Other disclosures

Effective tax rate

The 2021 effective tax rate is 21.6% (2020: 30.0%; 2019: 24.5%).

The tax charge associated with discontinued operations in 2019 is recognised separately in “Profit after tax for the financial year from discontinued operations”. See note 3 for further details.

Changes in tax rates

The total tax charge in future periods will be affected by any changes to the tax rates in force in the countries in which the Group operates.

Proposed dividends

There are no income tax consequences for the Company in respect of dividends proposed prior to issuance of the Consolidated Financial Statements and for which a liability has not been recognised.