PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Six months ended June 30, 2005 and 2004 Expressed in rupiah, unless otherwise stated
26
10. TAXATION continued 2005
2004
Reversal of trade discount 13,543,264,140
- Receivables written off during the period
2,545,918,649 -
Realization of recultivation expenses see Note 22l 283,527,632
- 80,166,496,636
95,274,790,799 Permanent differences
Non-deductible expenses Employees’ benefits
21,858,894,779 17,839,415,613
Donations 5,237,178,992
5,551,640,511 Public relations
2,210,147,028 3,523,252,987
Others 308,047,897
94,732,644 Income already subjected to final tax
5,419,388,987 3,671,699,635
Equity in net earnings of associated companies - net
1,743,067,699 2,207,689,235
22,451,812,010 21,129,652,885
Estimated taxable income fiscal loss of the Company
385,871,996,260 223,496,648,753
Estimated tax loss carryforward at beginning of period
1,627,684,818,624 1,692,713,302,871 Corrections by the Tax Office
13,012,856,409 13,418,912,977
Estimated tax loss carryforward at end of period 1,228,799,965,955 1,902,791,038,647
Under existing tax regulations, the tax loss carryforward can be utilized within five 5 fiscal years from the date the tax loss is incurred.
c. The details of corporate income tax expense benefit are as follows:
2005 2004
Current income tax expense Company
- -
Subsidiaries 956,348,900
1,662,659,900 Total current income tax expense
956,348,900 1,662,659,900
Deferred income tax expense benefit Company
143,715,404,792 34,440,883,493
Subsidiaries 253,363,508
205,012,772 Net income tax expense benefit
143,968,768,300 34,645,896,265
Total 144,925,117,200
32,983,236,365
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Six months ended June 30, 2005 and 2004 Expressed in rupiah, unless otherwise stated
27
10. TAXATION continued
d. The calculation of estimated claims for tax refund and estimated corporate income tax payable are as follows:
2005 2004
Current income tax expense Company
- -
Subsidiaries 956,348,900
1,662,659,900 Total
956,348,900 1,662,659,900
Prepayments of income tax Company
12,299,216,529 25,759,090,259
Subsidiaries 17,110,790,742
12,479,123,804 Total
29,410,007,271 38,238,214,063
Estimated claims for tax refund - presented as part of “Prepaid Taxes” in the
consolidated balance sheets Company
12,299,216,529 25,759,090,259
Subsidiaries 16,154,441,842
10,816,463,904
Total 28,453,658,371
36,575,554,163 Estimated Corporate Income Tax Payable
Subsidiary -
-
In March 2005, the Company received a decision letter from the Tax Office wherein the Tax Office approved the Company’s 2003 claim for tax refund amounting to Rp22,648,223,940 net of
additional taxes and penalties and increased the taxable income to Rp758,843,760,148. The difference between the amount of taxable income approved by the Tax Office and the amount
reported of Rp13,012,856,409 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 the Company’s 2002 claim for tax refund amounting to Rp9,677,584,970 net of additional
taxes and penalties and increased the taxable income to Rp1,080,012,260,671. The difference between the amount of taxable income approved by the Tax Office and the amount reported of
Rp13,418,912,977 was recognized as an adjustment to the Company’s tax loss carryforward in 2004. Moreover, the Tax Office also approved the Company’s 2002 claim for tax refund
amounting to Rp 10,359,940,562. 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 Rp 3,830,534,868, and made additional tax assessment of Rp 37,447,192. DAP are in process of contested the result of the tax assessment
and the unapproved amount has remained a 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 DAP’s 2002 claim for tax refund amounting to Rp6,195,133,712, out of total claim of
Rp11,605,908,212. DAP has contested the result of the tax assessment to the Tax Court and the unapproved amount has remained a part of “Prepaid Taxes” in the consolidated balance sheets.
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Six months ended June 30, 2005 and 2004 Expressed in rupiah, unless otherwise stated
28
10. TAXATION continued
