PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Nine months ended September 30, 2006 and 2005 Expressed in rupiah, unless otherwise stated
27
10. TAXATION continued
c. The details of corporate income tax expense benefit are as follows:
2006 2005
Current Company
138,283,563,800 -
Subsidiaries 9,138,610,500
2,674,795,100 147,422,174,300
2,674,795,100 Deferred
Company 104,470,830,942
251,692,145,104 Subsidiaries
759,640,612 1,331,878,820
103,711,190,330 250,360,266,284
Total 251,133,364,630
253,035,061,384
d. The calculation of estimated claims for income tax refund is as follows:
2006 2005
Current income tax expense Company
138,283,563,800 -
Subsidiaries 9,138,610,500
2,674,795,100 Total
147,422,174,300 2,674,795,100
Prepayments of income tax Company
91,641,624,219 6,844,285,320
Subsidiaries 8,948,938,608
7,538,138,724 Total
100,590,562,827 14,382,424,044
Estimated claims for income tax refund - presented as part of “Prepaid Taxes” in the
consolidated balance sheets Company
- 6,844,285,320
Subsidiaries 2,076,281,850
4,863,343,624 Total for the current year
2,076,281,850 11,707,628,944
Claims for income tax refund from prior years: Company
2005 10,414,347,316
- 2004
- 8,328,177,255
Subsidiaries 6,510,604,140
12,584,521,053
Total 19,001,233,306
32,620,327,252
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Nine months ended September 30, 2006 and 2005 Expressed in rupiah, unless otherwise stated
28
10. TAXATION continued
In March 2006, the Company received a decision letter from the Tax Office wherein the Tax Office approved to refund the claim for 2004 income tax and increased the 2004 taxable income to
Rp57,969,361,654. The difference of Rp6,359,790,385 between the amount of taxable income approved by the Tax Office and the amount reported was recognized as an adjustment to the
Company’s tax loss carryforward in 2006. In March 2005, the Company received a decision letter from the Tax Office wherein the Tax Office
approved to refund the claim for 2003 income tax and increased the 2003 taxable income to Rp758,843,760,148. The difference of Rp13,012,856,409 between the amount of taxable income
approved by the Tax Office and the amount reported was recognized as an adjustment to the Company’s tax loss carryforward in 2005.
In April 2006, DAP received a decision letter from the Tax Office wherein the Tax Office approved to refund DAP’s 2003 claim for tax refund amounting to Rp3,824,659,200.
In March 2006, DAP received a decision letter from the Tax Office wherein the Tax Office approved to refund DAP’s 2004 claim for tax refund amounting to Rp2,946,642,366, out of the total claim of
Rp2,991,878,166.
In February 2004, DAP received a decision letter from the Tax Office wherein the Tax Office approved to refund DAP’s 2002 claim for tax refund amounting to Rp6,195,133,712, out of the total
claim of Rp11,605,908,212. DAP has contested the result of the tax assessment and the disapproved portion of the claim has remained as part of “Prepaid Taxes” in the 2005 consolidated
balance sheets. Furthermore, on 16 August 2006 the Tax Court granted the DAP’s request for an appeal amounting to Rp5,391,795,600, and is presented as part of “Other Receivables” in the 2006
consolidated balance sheets.
e. The reconciliation between income before corporate income tax expense multiplied by the applicable tax rate and corporate income tax expense as shown in the consolidated statements of
income for the nine months ended September 30, 2006 and 2005 is as follows:
2006 2005
Income before corporate income tax expense 808,976,520,116
791,300,781,421 Reversal of inter-company consolidation eliminations
4,776,876,808 5,673,471,474
Combined income, net of loss, before income tax of the Company and Subsidiaries
804,199,643,308 785,627,309,947
Tax expense at the applicable tax rate 241,189,892,238
235,670,692,744 Tax effects on permanent differences:
Non-deductible expenses 15,609,909,799
15,253,975,182 Income already subjected to final tax
6,670,956,510 4,506,935,834
Equity in net losses earnings of associated companies - net
903,418,013 2,713,472,369
Tax corrections 1,907,937,116
3,903,856,923
Corporate income tax expense per consolidated statements of income
251,133,364,630 253,035,061,384
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Nine months ended September 30, 2006 and 2005 Expressed in rupiah, unless otherwise stated
29
10. TAXATION continued
