8. Income Tax

2020

2019

€’000

€’000

Current Tax Credit

Current year

1,798

-

Under/(over) provision from prior year

232

(1,592)

2,030

(1,592)

Deferred Tax Credit

Origination and reversal of temporary differences (note 22)

(167)

(97)

Total Income Tax Expense/(Credit)

1,863

(1,689)

Reconciliation of Effective Tax Rate

2020

2019

€’000

€’000

Surplus/(Deficit) before income tax

9,801

(8,890)

Surplus/(Deficit) before income tax multiplied by the standard

1,225

(1,111)

rate of corporation tax in Ireland of 12.5% (2019: 12.5%)

Effects of:

Income taxable at a higher rate of tax

-

103

Non-recognition of deferred tax asset on current year tax losses

-

490

Withholding tax

13

1

Pension timing differences

(105)

(13)

Other differences

420

374

Prior year adjustment

232

(1,593)

Disallowed expenses

78

60

Total Income Tax Expense/(Credit)

1,863

(1,689)

Deferred Tax Recognised directly in Other Comprehensive Income

Relating to pension asset (note 22)

(5,051)

(7,606)

Relating to losses (note 22)

-

13,801

Relating to cash flow hedge (note 22)

-

(13)

(5,051)

6,182

Television licence fee income that RTÉ receives by way of “grant-in-aid” is subject to corporation tax with effect from 1 January 2007. The Group has trading losses forward for tax purposes of €651 million at 31 December 2020. Due to the uncertainty surrounding when these losses may ultimately be utilised, a deferred tax asset of €13.801 million has only been recognised.