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.