Deferred tax liabilities 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 49

25. TAXATION continued

e. Tax assessments continued 2007 fiscal year

In 2009, the Company received tax assessment letters confirming overpayment of corporate income tax and underpayment of VAT and various withholding tax. The underpayment based on tax assessment amounted to Rp 103,447 had been paid by Company, partially through offset with overpayment of corporate income tax based on tax assessment amounted to Rp 49,024. In October 2009, the Company filed objection letters to the DGT against the tax assessments confirming underpayment of income tax article 26. Subsequently in December 2009 the Company filed objection letters to the DGT against the tax assessments confirming overpayment of corporate income tax, tax assessments confirming underpayment of income tax article 23 and VAT. Up to the date of this report, the DGT has not responded to objection letters submitted by Company. Under the taxation laws of Indonesia, the Company submits tax returns on the basis of self- assessment. The Tax Authorities may assess or amend the tax liabilities within the Statute of Limitations, under the prevailing regulations. Based on a new tax Law No. 282007 concerning the General Provision and Procedure of Taxation effective as of 1 January 2008, the DGT may assess or amend tax liability within 5 five years of the time the tax becomes due. For tax liabilities from fiscal year 2001 up to fiscal year 2007 which have not been settled, the tax assessment expires at the latest in the year 2013.

26. RELATED PARTY INFORMATION

a. Nature of transactions and relationships with related parties

The nature of transactions and relationships with related parties is as follows: Nature of the relationships Related parties with related parties Nature of transactions Telekom Malaysia Berhad Entity under common control ITKPVoIP revenue, leased line revenue, interconnection charges, other telecommunications service costs and reimbursement of expenses Telekom Malaysia - Hongkong Entity under common control ITKPVoIP revenue and leased line revenue Telekom Malaysia S Pte., Ltd. Entity under common control ITKPVoIP revenue, interconnection charges and other telecommunications service costs Celcom Malaysia Berhad Entity under common control ITKPVoIP revenue, international roaming revenue, coorporation for voucher recharge and airtime transfer, interconnection charges and reimbursement of expense Celcom Multimedia M Sdn Bhd Entity under common control Cooperation for money transfer through remittance agent Dialog Telekom Ltd. Entity under common control International roaming revenue and interconnection charges 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 50

26. RELATED PARTY INFORMATION continued

a. Nature of transactions and relationships with related parties continued

Nature of the relationships Related parties with related parties Nature of transactions Hello Axiata Company Limited Entity under common control International roaming revenue and Cambodia interconnection charges formerly Telekom Malaysia International Cambodia Co. Ltd. Axiata Bangladesh Limited Entity under common control International roaming revenue and formerly TM International interconnection charges Bangladesh Ltd. PT Rajawali Corpora Shareholders until May 2007, Building rental one of PT Rajawali Corpora’s directors is the Company’s commissioner M1 Limited formerly Entity under common control International roaming revenue and MobileOne Ltd. interconnection charges Idea Cellular Limited India Entity under common control International roaming revenue and formerly Spice Communications interconnection charges Ltd. Axiata Group Berhad Entity under common control Reimbursement of expenses formerly TM International Berhad PT Bank CIMB Niaga Tbk Entity under common control Leased line revenue, cash and formerly PT Bank Niaga cash equivalent Tbk and Lippo Bank Emirates Telecommunications Afiliate of shareholder International roaming revenue and Corporation interconnection charges Etihad Etisalat Afilliate of shareholder International roaming revenue and interconnection charges Thuraya Satellite Afilliate of shareholder International roaming revenue and Telecommunications interconnection charges Company PT VADS Indonesia Entity under common control Outsource contact centre, sale of assets and reimbursement of expenses

b. Cash and cash equivalents

31122007 31122008 31122009 31032009 3103 2010 PT Bank CIMB Niaga Tbk formerly PT Bank Niaga Tbk and Lippo Bank 91,554 110,077 94,452 174 641 As a percentage of total cash and cash equivalents 11.36 9.41 12.63 0.03 0.05