PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2006 With comparative figures for 2005
Expressed in rupiah, unless otherwise stated
28
11. TAXATION continued
The Company’s estimated taxable income for 2005, as stated above, conforms with the amount reported in its 2005 corporate income tax return.
As of the independent auditors’ report date, the Tax Office is conducting an examination of the Company’s 2005 corporate income tax return.
c. The details of corporate income tax expense benefit are as follows:
2006 2005
Current Company
150,395,127,800 -
Subsidiaries 8,359,570,000
4,252,138,600 158,754,697,800
4,252,138,600 Deferred
Company 111,130,899,860
335,084,539,785 Subsidiaries
490,508,925 1,210,675,443
110,640,390,935 333,873,864,342
Total 269,395,088,735
338,126,002,942
d. The calculation of estimated claims for income tax refund is as follows:
2006 2005
Current income tax expense Company
150,395,127,800 -
Subsidiaries 8,359,570,000
4,252,138,600 Total
158,754,697,800 4,252,138,600
Prepayments of income tax Company
150,594,431,333 10,368,661,923
Subsidiaries 12,063,244,858
10,201,181,203 Total
162,657,676,191 20,569,843,126
Estimated claims for income tax refund - presented as part of “Prepaid Taxes” in the consolidated
balance sheets Company
199,303,533 10,368,661,923
Subsidiaries 3,771,750,599
6,221,833,272 Total for the current year
3,971,054,132 16,590,495,195
Claims for income tax refund from prior years: Company
2005 10,414,347,319
- 2004
- 8,383,878,232
Subsidiaries 361,252,286
12,622,709,918
Total 14,746,653,737
37,597,083,345
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2006 With comparative figures for 2005
Expressed in rupiah, unless otherwise stated
29
11. TAXATION continued
In March 2006, the Company received a decision letter from the Tax Office wherein the Tax Office approved to refund the claim for 2004 income tax and increased the 2004 taxable income to
Rp57,969,361,654. The difference of Rp6,359,790,385 between the amount of taxable income approved by the Tax Office and the amount reported was recognized as an adjustment to the
Company’s tax loss carryforward in 2006.
In March 2005, the Company received a decision letter from the Tax Office wherein the Tax Office approved to refund the claim for 2003 income tax and increased the 2003 taxable income to
Rp758,843,760,148. The difference of Rp13,012,856,409 between the amount of taxable income approved by the Tax Office and the amount reported was recognized as an adjustment to the
Company’s tax loss carryforward in 2005.
In December 2006, DAP received a decision letter from the Tax Office wherein the Tax Office approved to refund DAP’s 2005 claim for tax refund amounting to Rp5,849,231,775 and is
presented as part of “Other Receivables from Third Parties” in the 2006 consolidated balance sheet.
In April 2006, DAP received a decision letter from the Tax Office wherein the Tax Office approved to refund DAP’s 2003 claim for tax refund amounting to Rp3,824,659,200, out of the total claim of
Rp3,830,534,868.
In March 2006, DAP received a decision letter from the Tax Office wherein the Tax Office approved to refund DAP’s 2004 claim for tax refund amounting to Rp2,946,642,366, out of the total claim of
Rp2,991,878,166.
In February 2004, DAP received a decision letter from the Tax Office wherein the Tax Office approved to refund DAP’s 2002 claim for tax refund amounting to Rp6,195,133,712, out of the total
claim of Rp11,605,908,212. DAP has contested the result of the tax assessment and the disapproved portion of the claim has remained as part of “Prepaid Taxes” in the 2005 consolidated
balance sheet. Furthermore, on August 16, 2006, the Tax Court issued a decision in favor of DAP and the refund was received by DAP in October 2006. The Tax Office, however, filed an objection to
the Tax Court’s decision and asked for a judicial review by the Supreme Court. As of January 22, 2007 the independent auditors’ report date, the Supreme Court has not rendered any decision on
the matter.
e. The reconciliation between income before corporate income tax expense after the reversal of inter- company eliminating entries during consolidation multiplied by the applicable tax rate and
corporate income tax expense as shown in the consolidated statements of income for the years ended December 31, 2006 and 2005 is as follows:
2006 2005
Income before corporate income tax expense 862,197,105,510 1,077,811,880,570
Reversal of inter-company eliminating entries during consolidation
5,933,687,695 72,113,420,472
Combined income, net of loss, before income tax of the Company and Subsidiaries
856,263,417,815 1,149,925,301,042
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2006 With comparative figures for 2005
Expressed in rupiah, unless otherwise stated
30
11. TAXATION continued 2006
