{"text_format":"1","workbook":"xlsx","n_sheets":4,"sheets":["Contents","Style Guidelines","TAF calculation","Average Tax rate"],"not_rendered":{"charts":0,"images":1,"macros":1,"external_links":1,"defined_names":41,"comments":0,"pivot_tables":0},"unopened":[],"bounds":{"document_bytes":16777216,"sheet_cells":100000,"rows_first":2000,"rows_last":500,"rows_between":2000,"halvings":0,"cell_chars":16384,"cell_head_chars":4096},"cells_cut":0,"cells_raw":0,"read":"whole","date_system":"1900"}

{"sheet":"Contents","index":0,"n_rows":46,"n_cols":6,"rows_kept":46,"cut":false,"hidden":false,"merged":[[43,0,43,5],[45,0,45,5],[36,0,36,5],[37,0,37,5],[38,0,38,5],[40,0,40,5],[41,0,41,5]]}
[]
[null,null,null,null,null,{"$f":"Workbook.Title","v":"TAF Calculation"}]
[]
["Information"]
[]
["Title ","TAF Calculation"]
["Project case code"]
["Objective","Calculate Tax Adjustment Factor for derivation of ALF for 900 MHz and 1800 MHz spectrum"]
["Version","Version 2"]
["Status","Approved for release"]
[]
["Confidentiality status","No confidential data"]
["Release date","2015-09-01"]
[]
["Contents"]
[]
["Sheet","Description",null,"Status","Notes"]
["Contents","This contents sheet",null,"Approved for release"]
["Style Guidelines","A guide to the styles used in this workbook",null,"Approved for release"]
["TAF Calculation","Calculation of TAF",null,"Approved for release"]
["Average Tax rate","Calculates the average tax rate that produces the same TAF as that calculated in \"TAF calculation\" sheet",null,"Approved for release"]
[]
["Differences compared to Version 1"]
[]
["An earlier spreadsheet, Version 1, was made available when the October 2013 consultation was published."]
["See:","http://www.ofcom.org.uk/static/models/alf.xlsm"]
[]
["The differences in the \"TAF calculation\" sheet in Version 2 compared to Version 1 are:"]
["Updated inputs for:","Real post discount rate (cell B5); Main corporate tax rates (cells C6:V6); and Annual inflation assumption (cell B8)"]
["Different labels for:","Real post tax discount rate (cell A5), which was previously labelled as Real post tax cost of capital; and different years, 2015/16 to 2034/35 (cells C4:V4), which were previously labelled as 2013/14 to 2032/33."]
["Omitted calculation:","The calculation of the base level of ALFs is no longer shown (the formula to derive these ALFs is set out in Section 6 of the Statement)."]
[]
["The \"Average Tax rate\" sheet has been included in Version 2"]
[]
["Terms and conditions"]
[]
["The terms and conditions on which OFCOM is making available the model are set out below.                                      "]
["                                                "]
["The TAF Calculation model has been created solely for the purpose of deriving ALF for 900 MHz and 1800 MHz spectrum, according to the methodology described in Section 6 of the Statement. "]
[]
["All right, title and interest in the provided model (the ‘Model’) are owned by OFCOM. Such title and interest is protected by United Kingdom intellectual property laws and international treaty provisions. While you may freely use the Model for the purposes for which it is provided, as set out in the accompanying model documentation, it is not to be modified in any way or used for commercial gain or otherwise without the prior written permission of OFCOM.                                                                                   "]
["No representation or warranty is given as to the accuracy, completeness or correctness of the provided Model and it is provided 'as is'. It is provided without any representation or endorsement made and without warranty of any kind, whether express or implied, including but not limited to the implied warranties of satisfactory quality, fitness for a particular purpose, non-infringement, compatibility, security and accuracy.                                        "]
["                                                "]
["OFCOM does not accept any responsibility for any loss, disruption or damage to your data or your computer system which may occur whilst using the Model or material derived from the Model. OFCOM does not warrant that the functions contained in the Model will be uninterrupted or error free. Also, OFCOM does not warrant that defects will be corrected, or that the Model provided is free of viruses. "]
["                                                "]
["In no event will OFCOM be liable for any loss or damage including, without limitation, indirect or consequential loss or damage, or any loss or damages whatsoever arising from use or loss of use of, data or profits arising out of or in connection with the use or otherwise of the provided Model. By using this Model, you agree to the above.                                           "]

{"sheet":"Style Guidelines","index":1,"n_rows":38,"n_cols":8,"rows_kept":38,"cut":false,"hidden":false,"merged":[]}
[]
[null,null,null,null,null,null,null,"Style Guidelines"]
["NB Use Window Unfreeze Panes (on each worksheet) to have row 1 scroll with the rest of the worksheet"]
[]
["Styles"]
[]
[]
[null,"Input",100,null,"An input to the model that it is expected the user will change (change at will)"]
[]
[null,"Output",100,null,"A key result from this part of the model (in particular one that will be used elsewhere in the model)"]
[]
[null,"Highlight",100,null,"A cell that is highlighted for uncertainty"]
[]
[null,"Note or Source","Note",null,"A note (NB smaller than standard font size)"]
[]
[null,"Un-format",null,null,"Going back to default Excel formatting"]
[]
[null,"Advanced user styles"]
[]
[null,"Input assumption",100,null,"An input to the model that it is expected the user will change (change at will)"]
[]
[null,"Input Data",100,null,"A piece of real data (only change if you have better data)"]
[]
[null,"Checksum",0,null,"A side calculation intended solely to cross check a result (and which therefore should not be referenced anywhere else in the model)"]
[]
[null,"Note ","Note",null,"A note (NB smaller than standard font size)"]
[]
[null,"Source","Source",null,"A source"]
[]
[null,"Named range","Name",null,"An Excel Name applying to one or more adjacent cells (use Insert Name Create to actually create the Excel Names)"]
[]
[null,"H1","Title",null,"Heading level 1"]
[]
[null,"H2","Title",null,"Heading level 2"]
[]
[null,"H3","Title",null,"Heading level 3"]
[]
[null,"H4","Title",null,"Heading level 4"]

{"sheet":"TAF calculation","index":2,"n_rows":32,"n_cols":22,"rows_kept":32,"cut":false,"hidden":false,"merged":[]}
["Calculation of tax adjustment factor for ALF",null,null,null,null,null,null,null,null,null,null," "]
[]
["Input assumptions"]
[null,null,"2015/16","2016/17","2017/18","2018/19","2019/20","2020/21","2021/22","2022/23","2023/24","2024/25","2025/26","2026/27","2027/28","2028/29","2029/30","2030/31","2031/32","2032/33","2033/34","2034/35"]
["Real post tax discount rate",1.7999999999999999E-2]
["Main corporate tax rate",null,0.2,0.2,0.19,0.19,0.19,0.18,0.18,0.18,0.18,0.18,0.18,0.18,0.18,0.18,0.18,0.18,0.18,0.18,0.18,0.18]
["Duration of ALF calculation of 20 years ",20]
["Annual inflation assumption",0.02]
["Inflation index",null,1,{"$f":"C9*(1+$B$8)","v":1.02},1.0404,1.0612079999999999,1.08243216,1.1040808032,1.1261624192640001,1.14868566764928,1.1716593810022657,1.1950925686223111,1.2189944199947573,1.2433743083946525,1.2682417945625455,1.2936066304537963,1.3194787630628724,1.3458683383241299,1.3727857050906125,1.4002414191924248,1.4282462475762734,1.4568111725277988]
[]
["All in real terms. Payments assumed to occur at the beginning of the year."]
[]
["Run macro to calculate Tax Adjustment Factor if necessary"]
[]
[{"$f":"IF(ROUND(Check_TAF,5)=0,\"Currently no need to run macro\",\"NEED TO RUN MACRO\")","v":"Currently no need to run macro"}]
[]
[]
["This macro iteratively calculates the Tax Adjustment Factor, which reflect the more advantageous tax treatment of ALF compared to lump sum payments."]
["The macro hard codes the ALF figure assumed in the calculation of the tax adjustment factor."]
[]
["Calculation of Tax Adjustment Factor"]
[null,"PV","2013/14","2014/15","2015/16","2016/17","2017/18","2018/19","2019/20","2020/21","2021/22","2022/23","2023/24","2024/25","2025/26","2026/27","2027/28","2028/29","2029/30","2030/31","2031/32","2032/33"]
["Lump sum assumed for tax adjustment factor calculation",100]
["Lump sum value amortised (falls over time with inflation)",{"$f":"NPV($B$5,D24:V24)+C24","v":71.594083309874762},{"$f":"($B$23/$B$7)/C$9","v":5},4.9019607843137258,4.805843906189927,4.7116116727352226,4.6192271301325709,4.528654049149579,4.4398569109309598,4.3528008930695687,4.267451855950557,4.1837763293632912,4.1017414993757759,4.021315195466447,3.9424658779082811,3.8651626254002762,3.7893751229414465,3.7150736499425947,3.6422290685711713,3.5708128123246774,3.5007968748281151,3.4321537988510933]
["Tax benefits of amortisation of lump sum payment",{"$f":"NPV($B$5,D25:V25)+C25","v":13.21728629280172},{"$f":"C24*C$6","v":1},0.98039215686274517,0.91311034217608611,0.89520621781969234,0.87765315472518846,0.81515772884692417,0.79917424396757275,0.78350416075252238,0.76814133407110019,0.7530797392853924,0.73831346988763968,0.72383673518396041,0.70964385802349061,0.69572927257204964,0.68208752212946033,0.66871325698966699,0.65560123234281087,0.64274630621844187,0.63014343746906065,0.61778768379319682]
[]
[{"$f":"A23","v":"Lump sum assumed for tax adjustment factor calculation"},{"$f":"B23","v":100}]
["Tax benefits for annual licence fees",{"$f":"NPV($B$5,D28:V28)+C28","v":19.570185428176099},{"$f":"C30*C$6","v":1.2533078507760762},1.2533078507760762,1.1906424582372723,1.1906424582372723,1.1906424582372723,1.1279770656984685,1.1279770656984685,1.1279770656984685,1.1279770656984685,1.1279770656984685,1.1279770656984685,1.1279770656984685,1.1279770656984685,1.1279770656984685,1.1279770656984685,1.1279770656984685,1.1279770656984685,1.1279770656984685,1.1279770656984685,1.1279770656984685]
["less Tax benefits of amortisation of lump sum payment",{"$f":"-B25","v":-13.21728629280172}]
["Annual licence fee ",{"$f":"NPV($B$5,D30:V30)+C30","v":106.35289913537433},6.2665392538803806,{"$f":"ALF_for_TAF_calc","v":6.2665392538803806},6.2665392538803806,6.2665392538803806,6.2665392538803806,6.2665392538803806,6.2665392538803806,6.2665392538803806,6.2665392538803806,6.2665392538803806,6.2665392538803806,6.2665392538803806,6.2665392538803806,6.2665392538803806,6.2665392538803806,6.2665392538803806,6.2665392538803806,6.2665392538803806,6.2665392538803806,6.2665392538803806]
["Tax Adjustment Factor",{"$f":"1+(B28+B29)/B27","v":1.0635289913537438}]
["Check=0",{"$f":"SUM(B27:B29)-B30","v":0}]

{"sheet":"Average Tax rate","index":3,"n_rows":29,"n_cols":22,"rows_kept":29,"cut":false,"hidden":false,"merged":[]}
["Calculation of Average Tax rate"]
[]
[]
["Run macro to calculate Average Tax rate if necessary"]
[]
[{"$f":"IF(ROUND(Check_Tax,5)=0,\"Currently no need to run macro\",\"NEED TO RUN MACRO\")","v":"Currently no need to run macro"}]
[]
[]
["Input assumptions"]
[]
["Real post tax discount rate",{"$f":"'TAF calculation'!B5","v":1.7999999999999999E-2}]
["Average corporate tax rate",0.18277087143532469]
["ALF annuity period (years)",{"$f":"'TAF calculation'!B7","v":20}]
["Annual inflation assumption",{"$f":"'TAF calculation'!B8","v":0.02}]
[]
[null,"year",1,{"$f":"C16+1","v":2},{"$f":"D16+1","v":3},4,5,6,7,8,9,10,11,12,13,14,15,16,17,18,19,20]
["Inflation index",null,1,{"$f":"C17*(1+$B$14)","v":1.02},{"$f":"D17*(1+$B$14)","v":1.0404},1.0612079999999999,1.08243216,1.1040808032,1.1261624192640001,1.14868566764928,1.1716593810022657,1.1950925686223111,1.2189944199947573,1.2433743083946525,1.2682417945625455,1.2936066304537963,1.3194787630628724,1.3458683383241299,1.3727857050906125,1.4002414191924248,1.4282462475762734,1.4568111725277988]
[]
["Post tax NPV of lump sum payment (where lump sum payment = 100 in arbitary units)"]
[null,"PV","2013/14","2014/15","2015/16","2016/17","2017/18","2018/19","2019/20","2020/21","2021/22","2022/23","2023/24","2024/25","2025/26","2026/27","2027/28","2028/29","2029/30","2030/31","2031/32","2032/33"]
["Lump sum assumed for tax adjustment factor calculation",100]
["Amortisation of lump sum  (falls over time with inflation)",null,{"$f":"($B$21/$B$13)/C$17","v":5},4.9019607843137258,4.805843906189927,4.7116116727352226,4.6192271301325709,4.528654049149579,4.4398569109309598,4.3528008930695687,4.267451855950557,4.1837763293632912,4.1017414993757759,4.021315195466447,3.9424658779082811,3.8651626254002762,3.7893751229414465,3.7150736499425947,3.6422290685711713,3.5708128123246774,3.5007968748281151,3.4321537988510933]
["PV of amortised lump sum",{"$f":"NPV($B$11,D22:V22)+C22","v":71.594083309874762}]
["PV of tax benefits of amortisation of lump sum payment",{"$f":"B23*B12","v":13.085312996159045}]
["lump sum payment, net of PV of tax benefit",{"$f":"B21-B24","v":86.914687003840953}]
[]
[]
["Tax Adjustment Factor (TAF)",{"$f":"B25/(B21*(1-B12))","v":1.0635289904129077}]
["Check=0",{"$f":"B28-TAF","v":-9.4083607571349148E-10}]