Corporate income tax expense
28. TAXATION Continued c. Corporate income tax expense - current continued
The tax reconciliations for the years ended December 31, 2002 and 2001 were as reported in the Bank’s tax returns. 2002 2001 Subsidiaries: Estimated taxable income 2,747 - Estimated corporate income tax expense - current 824 - Less: Income tax payments - - Corporate income tax payable 824 - 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 5 years for tax years prior to 1995. Tax Assesment On July 5, 2002, the Bank has received tax assessment letter SKPKB No. 000282060005102 dated July 5, 2002 for its 2000 corporate income tax. The assessment stated that the Bank has an underpayment of corporate income tax including interest and penalties totaling Rp2,248,387. The underpayment is due to fiscal positive corrections of its reported taxable income amounting to Rp15,806,521 which is comprised of provision for loan losses due to the transfer of bad loans to IBRA amounting to Rp12,242,846, provision for loan losses over allowable tax provision of Rp3,087,357 and fixed assets depreciation expense of Rp476,318. The Bank agreed in part to the tax auditors’ fiscal corrections on provision for loan losses over allowable tax provision of Rp3,087,357 and correction of the fixed assets depreciation of Rp476,318. These agreed corrections will however not result in taxable income due to the available tax loss carryforwards. In respect of the tax auditors’ fiscal correction on provision for loan losses due to the transfer of bad loans to IBRA amounting to Rp12,242,846 comprised of Rp8,505,300 transferred to IBRA in 2000 and Rp3,737,546 transferred in 2001, the Bank maintains that its claims for tax deductions for such losses is legally appropriate. The Bank is contesting the assessment and sent a letter for reconsideration “Peninjauan Kembali” No. DIR.CIF2152002 dated August 2, 2002 requesting the tax authorities to reassess the results of the tax examination. The Director of Tax Examination, Investigation and Collection, through his letter No. S-352PJ.7332002 dated August 21, 2002, rejected the Bank’s letter for reconsideration and requested the Bank file a Letter of Objection. Bank Mandiri sent a Letter of Objection No. DIR.CIF2582002 on September 26, 2002. On September 30, 2002 the Directorate General of Taxes issued letter of decision No. KEP- 406WPJ.07BD.032002 rejecting all of the Bank’s objections. Based on the Indonesian tax law, taxpayers can only raise applications for appeals to the tax court against tax decisions within a period of 3 three months from the date of the decision. In addition, the appeal letter may be submitted only if the taxpayer has paid 50 of the total tax assessment to the State Treasury. PT BANK MANDIRI PERSERO AND SUBSIDIARIES Notes to the Consolidated Financial Statements Continued December 31, 2002 and 2001 Expressed in millions of Rupiah, unless otherwise stated - 80 -28. TAXATION Continued c. Corporate income tax expense - current continued
Parts
» 2002 12 Full Audited Financial Statements w Notes
» GENERAL 2002 12 Full Audited Financial Statements w Notes
» GENERAL Continued 2002 12 Full Audited Financial Statements w Notes
» SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
» SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Continued
» BANK MANDIRI MERGER AND RECAPITALIZATION
» BANK MANDIRI MERGER AND RECAPITALIZATION Continued
» BANK MANDIRI MERGER AND RECAPITALIZATION Continued CURRENT ACCOUNTS WITH BANK INDONESIA
» CURRENT ACCOUNTS WITH OTHER BANKS
» CURRENT ACCOUNTS WITH OTHER BANKS Continued PLACEMENTS WITH OTHER BANKS
» PLACEMENTS WITH OTHER BANKS Continued
» PLACEMENTS WITH OTHER BANKS Continued SECURITIES
» SECURITIES Continued SECURITIES Continued
» SECURITIES Continued 2002 12 Full Audited Financial Statements w Notes
» GOVERNMENT BONDS Continued 2002 12 Full Audited Financial Statements w Notes
» TRADE DOCUMENTS AND OTHER FACILITIES
» TRADE DOCUMENTS AND OTHER FACILITIES Continued
» SECURITIES PURCHASED WITH AGREEMENTS TO RESELL
» DERIVATIVE RECEIVABLES AND PAYABLES DERIVATIVE RECEIVABLES AND PAYABLES Continued
» DERIVATIVE RECEIVABLES AND PAYABLES Continued LOANS LOANS Continued
» LOANS Continued 2002 12 Full Audited Financial Statements w Notes
» LOANS Continued LOANS Continued
» LOANS Continued ACCEPTANCES RECEIVABLE
» ACCEPTANCES RECEIVABLE Continued INVESTMENTS IN SHARES OF STOCK
» INVESTMENTS IN SHARES OF STOCK Continued
» INVESTMENTS IN SHARES OF STOCK Continued PREMISES AND EQUIPMENT PREMISES AND EQUIPMENT Continued
» PREMISES AND EQUIPMENT Continued
» OTHER ASSETS 2002 12 Full Audited Financial Statements w Notes
» OTHER ASSETS Continued 2002 12 Full Audited Financial Statements w Notes
» DEPOSITS FROM CUSTOMERS - DEMAND DEPOSITS DEPOSITS FROM CUSTOMERS - SAVINGS DEPOSITS
» DEPOSITS FROM OTHER BANKS - DEMAND DEPOSITS
» DEPOSITS FROM OTHER BANKS - INTER-BANK CALL MONEY
» DEPOSITS FROM OTHER BANKS - TIME DEPOSITS AND CERTIFICATES OF DEPOSIT Continued
» SECURITIES SOLD WITH AGREEMENT TO REPURCHASE
» ACCEPTANCES PAYABLE 2002 12 Full Audited Financial Statements w Notes
» SECURITIES ISSUED 2002 12 Full Audited Financial Statements w Notes
» SECURITIES ISSUED Continued FUND BORROWINGS
» FUND BORROWINGS Continued 2002 12 Full Audited Financial Statements w Notes
» ALLOWANCE FOR POSSIBLE LOSSES ON COMMITMENTS AND CONTINGENCIES
» ALLOWANCE FOR POSSIBLE ON COMMITMENTS AND CONTINGENCIES Continued
» Corporate income tax expense
» TAXATION Continued c. Corporate income tax expense - current
» TAXATION Continued c. Corporate income tax expense - current continued
» Corporate income tax expense - deferred
» TAXATION CONTINUED e. Deferred tax assets
» OTHER LIABILITIES 2002 12 Full Audited Financial Statements w Notes
» OTHER LIABILITIES Continued SUBORDINATED LOANS
» SUBORDINATED LOANS Continued 2002 12 Full Audited Financial Statements w Notes
» SUBORDINATED LOANS Continued SUBORDINATED LOANS Continued
» LOAN CAPITAL 2002 12 Full Audited Financial Statements w Notes
» LOAN CAPITAL Continued 2002 12 Full Audited Financial Statements w Notes
» MINORITY INTERESTS IN NET ASSETS OF CONSOLIDATED SUBSIDIARIES SHAREHOLDER’S EQUITY
» SHAREHOLDER’S EQUITY Continued
» INTEREST INCOME 2002 12 Full Audited Financial Statements w Notes
» INTEREST EXPENSE 2002 12 Full Audited Financial Statements w Notes
» OTHER FINANCING EXPENSES 2002 12 Full Audited Financial Statements w Notes
» PROVISIONREVERSAL OF ALLOWANCE FOR POSSIBLE LOSSES ON EARNING ASSETS
» GAINLOSS FROM INCREASEDECREASE IN VALUE OF SECURITIES AND GOVERNMENT BONDS
» GAIN FROM SALE OF SECURITIES AND GOVERNMENT BONDS
» GENERAL AND ADMINISTRATIVE EXPENSES SALARIES AND EMPLOYEE BENEFITS
» SALARIES AND EMPLOYEE BENEFITS Continued PENSION PLAN AND EMPLOYEE SERVICE ENTITLEMENTS
» PENSION PLAN AND EMPLOYEE SERVICE ENTITLEMENTS Continued
» OTHER OPERATING INCOME - OTHERS
» OTHER OPERATING EXPENSES - OTHERS
» NON-OPERATING INCOMEEXPENSES - NET
» COMMITMENTS AND CONTINGENCIES 2002 12 Full Audited Financial Statements w Notes
» COMMITMENTS AND CONTINGENCIES Continued
» FOREIGN CURRENCY TRANSACTIONS 2002 12 Full Audited Financial Statements w Notes
» BANK GUARANTEES RECEIVED AND ISSUED AND STANDBY LETTERS OF CREDIT Continued
» RISK MANAGEMENT 2002 12 Full Audited Financial Statements w Notes
» RISK MANAGEMENT Continued 2002 12 Full Audited Financial Statements w Notes
» MATURITY PROFILE 2002 12 Full Audited Financial Statements w Notes
» NET OPEN POSITION 2002 12 Full Audited Financial Statements w Notes
» CAPITAL ADEQUACY RATIO 2002 12 Full Audited Financial Statements w Notes
» NON-PERFORMING EARNINGS 2002 12 Full Audited Financial Statements w Notes
» SEGMENT INFORMATION 2002 12 Full Audited Financial Statements w Notes
» SEGMENT INFORMATION Continued 2002 12 Full Audited Financial Statements w Notes
» CUSTODIAL AND TRUST OPERATIONS
» CUSTODIAL AND TRUST OPERATIONS Continued
» CHANNELING LOANS 2002 12 Full Audited Financial Statements w Notes
» RELATED PARTY 2002 12 Full Audited Financial Statements w Notes
» RELATED PARTY TRANSACTIONS Continued SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES
» SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES Continued
» SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES Continued ECONOMIC CONDITIONS
» ECONOMIC CONDITIONS 2002 12 Full Audited Financial Statements w Notes
» ECONOMIC CONDITIONS Continued 2002 12 Full Audited Financial Statements w Notes
» GOVERNMENT GUARANTEE OF OBLIGATIONS OF LOCALLY INCORPORATED BANKS
» SUBSEQUENT EVENTS SUMMARY OF SIGNIFICANT DIFFERENCES BETWEEN ACCOUNTING PRINCIPLES
» SUMMARY OF SIGNIFICANT DIFFERENCES BETWEEN ACCOUNTING PRINCIPLES
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