This excerpt taken from the ICI 6-K filed Mar 21, 2007.
The current tax liability of £217m (2005 £360m) represents the amount of income taxes payable in respect of current and prior periods. Included within this balance is the provision for potential liabilities for taxation arising in prior and current years and various tax exposures and tax due to revenue authorities of £148m (2005 £248m).
Due to the different timing and nature of revenue audit processes in different jurisdictions, not all exposures can be specifically linked to enquiries.
The nature and amounts of the most significant exposures which are provided for are set out below.