PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year Ended December 31, 2006 With Comparative Figures For 2005
Expressed in millions of Rupiah, unless otherwise stated
81
27. TAXATION continued
c. Tax expense - current continued Under the Indonesian taxation laws, Bank Mandiri and its Subsidiaries submit tax returns on the basis of
self-assessment. The tax authorities may assess or amend taxes within 10 years after the date of the tax filings.
Tax Decisions and Tax Assessments On October 29, 2003, Bank Mandiri received tax assessment letters dated October 24, 2003 regarding
BDN tax audits for the period of January 1, 1999 up to July 31, 1999. Based on the assessment letters, BDN had tax underpayments amounting to Rp717,229 which consisted of income tax article 21 of
Rp172,378, income tax article 23 of Rp301, value added tax VAT of Rp1,501,final income tax article 4 2 of Rp542,846 and a VAT tax collection letter for an amount of Rp203. On January 13, 2004, the
Bank submitted an objection letter to the tax office regarding such tax assessment letters and the Director General of Taxation DGT approved most of the Bank’s objections by issuing tax decision
letters as follows: i.
Tax decision letter dated August 24, 2004 revised the value added tax assessment from Rp1,501 to Rp1,062. The Bank filed an appeal against such decision to the tax court on November 11, 2004.
On October 28, 2005 the tax court issued Tax Court Decisions No.Put.06848PPM.VI162005, which approved most of the bank’s appeal. On November 23, 2005 DGT issued decision letter No.
KEP-002WPJ.07KP.01032005 regarding implementation of tax court decision which revised VAT underpayment from Rp1,062 to Rp507. Bank had agreed and paid for the tax underpayment.
ii. Tax decision letter dated December 31, 2004 revised the final income tax article 4 2 assessment from Rp542,846 to Rp40,594. The Bank filed an appeal against such decision to the tax court on
March 29, 2005. On March 15, 2006 the tax court issued Tax Court Decisions No.Put.07796PPM.VI252006, which approved most of the bank’s appeal which revised the final
income tax article 4 2 underpayment from Rp40,594 to Rp39,067. Bank had agreed and paid for the tax underpayment.
iii. Tax decision letter dated December 31, 2004 revised the income tax article 21 assessment from Rp172,378 to Rp33,434. The Bank filed an appeal against such decision to the tax court on March
29, 2005. On February 20, 2006 the tax court issued Tax Court Decisions No.Put.07629PPM.VI102006, which approved most of the bank’s appeal. On March 21, 2006
DGT issued decision letter No. KEP-00019WPJ.07KP.01032006 regarding implementation of tax court decision which revised the income tax article 21 underpayment from Rp33,434 to Rp32,926.
Bank had agreed and paid for the tax underpayment.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year Ended December 31, 2006 With Comparative Figures For 2005
Expressed in millions of Rupiah, unless otherwise stated
82
27. TAXATION continued
