Mr. Conor O'Brien:

Our effective rate is very close to our actual rate. Some other jurisdictions, which have been less transparent and have a wider gap between their effective rate and their actual rate, have tended to escape scrutiny because the headline rate looks high, but many corporations have paid lower rates. It is now possible for a company with headquarters in the UK to create a finance company with an effective tax rate of 5%, which is much less than our 12.5%. That is a deliberate policy decision in the UK. Its patent box regime is a 10% rate which also undercuts our 12.5% rate. The EU is now scrutinising the patent box regime. The UK is defending it but it is not inconceivable that it could be held to be contrary to EU law and it may have to be amended.