PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2005 and 2004 Expressed in rupiah, unless otherwise stated
28
10. TAXATION continued
c. The details of corporate income tax expense benefit are as follows:
2005 2004
Current Company
- -
Subsidiaries 4,252,138,600
4,258,021,844 4,252,138,600
4,258,021,844 Deferred
Company 335,084,539,785
65,420,705,869 Subsidiaries
1,210,675,443 1,132,105,651
333,873,864,342 64,288,600,218
Total 338,126,002,942
68,546,622,062
d. The calculation of estimated claims for income tax refund is as follows:
2005 2004
Current income tax expense Company
- -
Subsidiaries 4,252,138,600
4,258,021,844 Total
4,252,138,600 4,258,021,844
Prepayments of income tax Company
10,368,661,923 8,383,878,232
Subsidiaries 10,201,181,203
7,259,831,101 Total
20,569,843,126 15,643,709,333
Estimated claims for income tax refund - presented as part of “Prepaid Taxes” in the
consolidated balance sheets Company
10,368,661,923 8,383,878,232
Subsidiaries 6,221,833,272
3,001,809,257 Total for the current year
16,590,495,195 11,385,687,489
Claims for income tax refund from prior years: Company
2004 8,383,878,232
- 2003
- 22,561,403,965
Subsidiaries 12,622,709,918
9,582,711,796
Total 37,597,083,345
43,529,803,250
As of the independent auditors’ report date, the Company has not yet submitted its 2005 income tax return, however, management represents that its 2005 corporate income tax return will be prepared
based on the computation as stated above. The Company’s estimated taxable income for 2004, as stated above, conforms with the amounts reported in its 2004 corporate income tax return.
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2005 and 2004 Expressed in rupiah, unless otherwise stated
29
10. TAXATION continued
As of the independent auditors’ report date, the Tax Office is conducting an examination of the Company’s 2004 income tax.
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 March 2004, the Company received a decision letter from the Tax Office wherein the Tax Office
approved to refund the claim for 2002 income tax and increased the 2002 taxable income to Rp1,080,012,260,671. The difference of Rp13,418,912,977 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 2004.
In March 2005, DAP received a decision letter from the Tax Office wherein the Tax Office disapproved DAP’s 2003 claim for tax refund amounting to Rp3,830,534,868 and made additional
tax assessment of Rp37,447,192. DAP is in the process of contesting the result of the tax assessment and the disapproved portion of the claim has remained as part of “Prepaid Taxes” in
the consolidated balance sheets.
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 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 years ended December 31, 2005 and 2004 is as follows:
2005 2004
Income before corporate income tax expense 1,077,811,880,570
184,570,048,620 Reversal of inter-company consolidation eliminations
72,113,420,472 7,109,069,170
Combined income, net of loss, before income tax of the Company and Subsidiaries
1,149,925,301,042 191,679,117,790
Tax expense at the applicable tax rate 344,942,589,901
57,468,735,147 Tax effects on permanent differences:
Non-deductible expenses 20,137,594,656
17,260,191,797 Cash dividend income
22,485,000,000 2,850,000,000
Income already subjected to final tax 6,439,377,804
4,641,273,801 Equity in net earnings of associated
companies - net 2,044,352,435
2,716,704,974 Others
124,066,688 -
Tax corrections 4,138,615,312
4,025,673,893
Corporate income tax expense per consolidated statements of income
338,126,002,942 68,546,622,062
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended December 31, 2005 and 2004 Expressed in rupiah, unless otherwise stated
30
10. TAXATION continued
