186
Adaro Energy Annual Report 2008 www.adaro.com
Adaro in Summary From Us to You
Running Adaro Management Report
Owning Adaro
PT ADARO ENERGY Tbk Schedule 554
FORMERLY PT PADANG KARUNIA AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2008 AND 2007 Expressed in million Rupiah, unless otherwise stated
37. TAXATION continued d.
Income tax expense continued 2008
2007 Permanent difference:
Income subject to final tax 6,397
221 Income from investments in subsidiaries and associates
754,755 84,666
Gain from sale of investments in subsidiaries 38,279
- Non-deductible expenses
8,124 9,607
791,307 75,280
16,208 26,533
Tax loss used 16,208
- Tax loss - the Company
- 26,533
Current income tax - the Company -
- Current income tax - subsidiaries
1,635,581 722,215
Consolidated current income tax 1,635,581
722,215 Current income tax of subsidiaries as at 31 December 2008, after accounting for extraordinary item refer to Note 44, was as
follows:
2008
Current income tax from ordinary activity 1,635,581
Current income tax - extraordinary item 304,970
Total current income tax 1,330,611
Current income tax computations are based on estimated taxable income. The amounts may be adjusted when Annual Tax Returns are filed with the tax office.
The Company’s tax losses carried forward, which can be offset against future taxable income for periods of five years, were incurred in the following fiscal periods:
Year Total
2005 43,708
2006 7,427
2007 26,533
77,668 The reconciliation between income tax expense and the theoretical tax amount on the Company’s profit before income tax
using currently enacted tax rates is as follows:
2008 2007
Consolidated profit before income tax 2,924,704
947,025 Profit before income tax - subsidiaries
2,811,424 986,690
Adjusted for consolidation elimination 694,235
87,740 Profit before income tax - the Company
807,515 48,075
Income tax calculated at 30 242,255
14,422 Income subject to final tax
1,919 66
Non-deductible expenses 2,437
2,882 Income from investments in subsidiaries and associates
226,427 25,400
Gain from sales of investments in subsidiaries 11,484
- Adjustment related to the changes of income tax rate
3,884 -
Unrecognised deferred tax assets 522
433 Income tax expense - the Company
9, 268 7,729
Income tax expense - subsidiaries 1,592,708
664,656 Consolidated income tax expense
1,601,976 656,927
Adaro Energy Annual Report 2008 www.adaro.com
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Contact Us Governing Adaro
Financial Report Corporate Social Responsibility
PT ADARO ENERGY Tbk Schedule 555
FORMERLY PT PADANG KARUNIA AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2008 AND 2007 Expressed in million Rupiah, unless otherwise stated
37. TAXATION continued e.
Deferred tax assets 2008
2007 The Company
Tax loss carried forward 19,417
28,163 Provision for employee benefits
- 522
Deferred tax assets at the end of the year 19,417
28,685 Deferred tax assets at the beginning of the year
28,685 20,956
Charged to consolidated statement of income 9,268
7,729 Deferred tax assets at the end of the year
19,417 28,685
Subsidiaries Tax loss carried forward
496,885 148,850
Provision for employee benefits 4,572
4,636 Difference between commercial and tax net book value of fixed assets
8,048 2,887
Difference in fixed assets under finance lease and lease instalments 16,471
23,520 476,938
132,853 Unrecognised deferred tax assets
452,531 124,715
Deferred tax assets at the end of the year 24,407
8,138 Deferred tax assets at the beginning of the year
8,138 12,743
Charged to consolidated statement of income 16,269
6,970 Reversal of deferred tax assets due to disposal of subsidiary
- 288
Loss on investments in subsidiary which is charged to equity -
11,287 Deferred tax assets at the end of the year
24,407 8,138
Consolidated Tax loss carried forward
516,302 177,013
Provision for employee benefits 4,572
5,158 Difference between commercial and tax net book value of fixed assets
8,048 2,887
Difference in fixed assets under finance lease and lease instalments 16,471
23,520 496,355
161,538 Unrecognised deferred tax assets
452,531 124,715
Deferred tax assets at the end of the year 43,824
36,823 Deferred tax assets at the beginning of the year
36,823 33,699
Charged to consolidated statement of income 7,001
14,699 Reversal of deferred tax assets due to disposal of subsidiary
- 288
Loss on investments in subsidiaries which is charged to equity -
11,287 Deferred tax assets at the end of the year
43,824 36,823
Although a portion of deferred tax assets are not recognised, management believes that it is more likely than not that the result of future operations will generate sufficient taxable income to realise the deferred tax assets. The realisation of deferred
tax assets is dependent to the ability of the Company to generate sufficient taxable income in the future.
