BAE Systems (LON: BA.) announced today that following agreements reached in respect of overseas tax matters a one off non-cash benefit has been recognised to 2019 earnings per share. In addition, following review of April’s EU Commission’s decision that concluded the UK’s Controlled Foreign Company regime partially represents State Aid, the Group has recognised a provision for the estimated exposure.
As a result of the above, a net earnings per share benefit of circa 5p arises which is additional to the current 2019 underlying earnings per share guidance.
BAE Systems plc state that these items are not expected to have a material impact on the underlying tax rate in future years.