PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Three Months ended March 31, 2005 and 2004 Expressed in rupiah, unless otherwise stated
26
10. TAXATION continued 2005
2004
Receivables written off during the period 1,130,934,917
- Realization of recultivation expenses see Note 22l
65,062,771 -
Depreciation of fixed assets 46,926,914,864
59,837,312,673 54,796,114,445
59,837,312,673 Permanent differences
Non-deductible expenses Employees’ benefits
8,181,277,708 8,935,488,811
Donations 2,244,715,009
2,451,912,894 Public relations
1,435,416,927 1,902,753,844
Others 224,832,796
165,057,517 Income already subjected to final tax
2,121,671,031 1,882,788,449
Equity in net earnings of associated companies - net
954,621,087 879,314,710
9,009,950,322 10,693,109,907
Estimated taxable income fiscal loss of the Company
166,154,670,227 59,924,021,418
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 1,448,517,291,988 1,739,218,411,312
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 are as follows:
2005 2004
Current income tax expense Company
- -
Subsidiaries 1,285,702,600
4,988,401,750 Total current income tax expense
1,285,702,600 4,988,401,750
Deferred income tax expense benefit Company
70,189,092,324 3,999,661,270
Subsidiaries 235,033,390
316,258,918 Net income tax expense
70,424,125,714 3,683,402,352
Total 71,709,828,314
8,671,804,102
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Three Months ended March 31, 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 1,285,702,600
4,988,401,750 Total
1,285,702,600 4,988,401,750
Prepayments of income tax Company
32,785,810,537 34,524,129,267
Subsidiaries 14,653,120,298
17,009,938,030 Total
47,438,930,835 51,534,067,297
Estimated claims for tax refund - presented as part of “Prepaid Taxes” in the
consolidated balance sheets Company
32,785,810,537 34,524,129,267
Subsidiaries 14,162,998,949
15,479,015,694
Total 46,948,809,486
50,003,144,961 Estimated Corporate Income Tax Payable
Subsidiary 795,581,251
3,457,479,414
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.
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 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
Three Months ended March 31, 2005 and 2004 Expressed in rupiah, unless otherwise stated
28
10. TAXATION continued
