Deferred tax liabilities TAXATION continued

PT XL AXIATA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2007, 2008 AND 2009; AND 31 MARCH 2009 AND 2010 Expressed in millions of Rupiah, unless otherwise stated Page 48

25. TAXATION continued

e. Tax assessments continued 2004 fiscal year

In 2006, the Company filed objection letters against the tax assessments confirming underpayment of income tax article 26 and VAT. In 2007, the DGT partially accepted the objection regarding VAT and reduced the underpayment of VAT by Rp 190. On the other hand, DGT rejected the objection regarding income tax article 26 and increased the underpayment of income tax article 26 by Rp 34,251. The Company paid the additional tax underpayment and recorded the results in the 2007 consolidated statement of income. In 2007, the Company filed an appeal letter to the Tax Court in response to the results of the objection process over the income tax article 26. Up to the date of this report, the Tax Court has not responded to the appeal letter. 2005 fiscal year In 2007, the Company filed objection letters against the tax assessments confirming underpayment of income tax article 26 and VAT. In 2008, the DGT partially accepted the objection regarding VAT and reduced the underpayment of VAT by Rp 63. On the other hand, the DGT rejected the objection regarding income tax article 26. The Company recorded the results in the 2008 consolidated statement of income. In 2008, the Company filed an appeal letter to the Tax Court in response to the results of the objection process over the income tax article 26. Up to the date of this report, the Tax Court has not responded to the appeal letter. 2006 fiscal year In June 2008, the Company received a tax assessment letter confirming overpayment of corporate income tax amounted to Rp 60,461. In July 2008, the Company received and recorded the restitution in the 2008 consolidated statement of income. In September 2008, the Company received tax assessment letters confirming underpayment of various income taxes, VAT, and tax penalties totalling to Rp 158,808. Subsequently, the DGT issued decision letter of rectification to reduce the tax penalties by Rp 932. The Company paid and recorded the above taxes underpayment in the 2008 consolidated statement of income. In December 2008, the Company filed objection letters to the DGT against the tax assessments regarding income tax article 23, article 26 and VAT. The DGT rejected the objection over income tax article 23 and partially accepted the objection over income tax article 26 and VAT. The Company credited the results in the 2010 consolidated statement of income. In March 2010, the Company submit appeal letter to Tax Court in relation with income tax article 26 and VAT. Up to the date of this report, the Tax Court has not responded to all the application letters submitted by the Company. PT XL AXIATA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2007, 2008 AND 2009; AND 31 MARCH 2009 AND 2010 Expressed in millions of Rupiah, unless otherwise stated Page 49

25. TAXATION continued