11. Income Tax Expense Factors that may affect future tax charges and other disclosure requirements Other considerations Proposed dividends Investments in subsidiaries and associates and interests in joint ventures Excess of capital allowances over depreciation Recognised within the Consolidated Income Statement 2012 2011 €m €m (a) Current tax Republic of Ireland (4)  - Overseas   113   194  Total current tax expense  109   194  (b) Deferred tax Origination and reversal of temporary differences: Defined benefit pension obligations  24   27  Share-based payment expense  1   - Derivative financial instruments (9)  5  Other items (2011: primarily in relation to tax losses carried forward) (5) (112) Total deferred tax expense/(income)  11  (80) Income tax expense reported in the Consolidated Income Statement  120   114  Recognised within equity (a) Within the Consolidated Statement of Comprehensive Income: Deferred tax - defined benefit pension obligations  28   56  Deferred tax - cash flow hedges  -  2  Income tax recognised directly within equity  28   58  Reconciliation of applicable tax rate to effective tax rate Profit before tax (€m)  674   711  Tax charge expressed as a percentage of profit before tax (effective tax rate): - current tax expense only 16.2% 27.3% - total income tax expense (current and deferred) 17.8% 16.0% 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  Higher tax rates on overseas earnings  4.2   4.6  Other items (comprising items not chargeable to tax/expenses not deductible for tax)  1.1  (1.1) Total effective tax rate  17.8   16.0  Based on current capital investment plans, the Group expects to continue to be in a position to claim capital allowances in excess of depreciation in future years. Given that participation exemptions and tax credits would be available in the context of the Group’s investments in subsidiaries and joint ventures in the majority of  the jurisdictions in which the Group operates, the aggregate amount of temporary differences in respect of which deferred tax liabilities have not been recognised  would be immaterial. 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. The total tax charge in future periods will be affected by any changes to the corporation tax rates in force in the countries in which the Group operates. The current  tax charge will also be impacted by changes in the excess of tax depreciation (capital allowances) over accounting depreciation and the use of tax credits. CRH 91