PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2016 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated
148
33. TAXATION continued e. Deferred tax assets - net continued
December 31, 2015
Beginning balance
Credited charged to
consolidated statement of
profit or loss and other
comprehensive income
Charged to equity
Ending balance
Bank Mandiri Deferred tax assets:
Loans write-off until 2008 1,331,538
82,825 -
1,248,713 Provision for post-employment benefit expense, provision
for bonuses, leave and holiday THR entitlements 963,865
163,217 58.110 1,068,972
Allowance for impairment loan losses 869,007
242,700 -
1,111,707 Allowance for impairment losses on financial assets other
than loans 410,180
16,632 -
426,812 Unrealised losses on decrease in fair value
of marketable securities and government bonds available for sale
139,816 -
235,953 375,769
Allowance for estimated losses arising from legal cases 100,936
6,710 -
107,646 Estimated losses on commitments and contingencies
39,030 35,116
- 74,146
Allowance for possible losses on abandoned properties 29,819
- -
29,819 Allowance for possible losses on repossessed assets
1,994 -
- 1,994
Accumulated losses arising from difference in net realisable value of repossessed assets
1,969 -
- 1,969
Unrealised losses on decrease in fair value of marketable securities and
government bonds fair value through profit or loss 1,501
3,156 -
4,657 Accumulated losses arising from difference in
net realisable value of abandoned properties 189
- -
189
Deferred tax assets 3,889,844
384,706 177,843
4,452,393 Deferred tax liabilities:
Unrealised gain on BOT transactions 20,268
1,560 -
21,828 Net book value of fixed assets
66,252 45,632
- 111,884
Deferred tax assets - Bank Mandiri only 3,803,324
337,514 177,843
4,318,681
Net deferred tax assets - Subsidiaries 385,796
515,841
Total consolidated deferred tax assets - net 4,189,120
4,834,522
Deferred tax assets are calculated using applicable tax rate or substantially enacted tax rate at consolidated statement of financial position dates.
Management believes that it is possible that future taxable income will be available to be utilised against the temporary difference, which results in deferred tax assets.
f. Tax on fixed assets revaluation
According to the Regulation of the Ministry of Finance No. 191PMK.0102015 dated October 15, 2015, which the application related to fixed assets revaluation that was filed until the date of December
31, 2015, will receive special treatment in the form of lower final income tax of 3. In this regard, the Bank has estimated the fair value of fixed assets land with nominal value amounting to Rp28,334,586
from previously Rp2,745,599. The Bank requested revaluation of fixed assets to tax office for tax purposes and the Bank has made tax payments amounting to Rp792,467 on May 25, 2016. The tax
office through letter No. KEP-418WPJ.192016 has approved the Bank’s request.
g. Tax assessment letters Fiscal year 2013
According to the verification result by Tax office, on December 16, 2014, Tax Office has issued Tax Underpayment Assessment Letter SKPKB which stated underpayment of corporate tax expense in
relation to the use of tax rate for 2013 fiscal year of Rp1,313,347 including penalties.
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2016 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated
149
33. TAXATION continued
g. Tax assessment letters continued
Fiscal year 2013 continued
Management disagree with the Tax Underpayment Assessment Letter and has submitted an objection letter to Tax Office dated March 10, 2015. Bank has paid all the tax underpayment amount and
recorded it as prepaid tax on December 31, 2016 and 2015. On March 7, 2016 the Tax Office has issued an objection letter rejecting the Bank’s objection. The
Bank has submitted an appeal over the objection letter issued to Tax Court on June 2, 2016. Until the date of this consolidated financial statement the appeal is still in progress.
Fiscal year 2010 According to the verification result by Tax Office on December 6, 2012, the Bank received Tax
Underpayment Assessment Letters SKPKB which stated underpayments of corporate income tax related with loan write-offs and Value Added Tax VAT and Tax Collection Letter penalties STP for
fiscal year 2010 totalled to Rp1,108,071.
Management disagree with the Tax Underpayment Assessment letter result and has submitted an objection letter to Tax Office dated March 4, 2013. The Bank has paid all the tax under payment and
recorded it as prepaid tax as of December 31, 2016 and 2015. On December 2013, the Tax Office has issued a decision letter to the Banks objection letters on VAT
above and partially accepted the Banks objection, therefore the Tax office refunded a portion of prepaid tax related to VAT. The Bank disagreed with the above decision letter and has proposed an
appeal for on the above decision letter to the Tax Court in March 2014.
On February 21, 2014, Tax Office has issued a decision letter to the Banks objection letters on tax underpayment on corporate income tax and Tax Office rejected the objection. The Bank has filed an
appeal against the objection decision letter to the Tax Court on May 19, 2014. On April and May 2016, the Tax Court has uttered their decision to approve majority of the appeal
submitted on the letter of objection on VAT and reject the appeal submitted on the letter of objection on income tax. The Bank disagrees with the decision and has requested for judicial review from the
Supreme Court of the Republic of Indonesia on August 15, 2016. Until the date of this consolidated financial statement the judicial review is still in progress.
h. Tax collection letter Fiscal year 2014
Based on the assessment result which was done by Tax Office on December 29, 2015, Tax Office issued Tax Collection Letter STP which stated underpayment of corporate tax expense for 2014
fiscal year of Rp1,459,120 and penalties of Rp233,459. Management disagree with the STP and Bank has submitted an application letter for STP cancellation
to Tax Office on December 31, 2015. Bank has paid all the tax underpayment of Rp1,459,120 and recorded it as prepaid tax. Based on the Decree of the Director General of Taxation No. KEP-
00250NKEBWPJ.192016 dated February 24, 2016, the Tax Office has granted all Banks’s requests and cancelled the STP.
On March 15, 2016, the Bank has proposed for compensation on tax refunds amounting to Rp1,459,120. On March 21, 2016, the Tax Office has granted a request for compensation submitted
by the Bank through Decree Refund Excess Tax Payment SKPKPP No. KEP-00044.PPHWPJ.19 KP.04032016 and Excess Tax Payment Order SPMKP No. 80158 093-0156-2016 for STP
payment of VAT tax year 2010 of Rp3,248, payment of income tax Article 29 amounted to Rp855,872 and payment of income tax Article 25 in 2016 amounted to Rp600,000.
