PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated
137
33. TAXATION continued e. Deferred tax assets - net continued
December 31, 2014
Beginning balance
Credited charged to
consolidated statement of
profit or loss and other
comprehensive income
Charged to equity
Ending balance
Bank Mandiri Deferred tax assets:
Loans write-off until 2008 1,486,003
154,465 -
1,331,538 Provision for post-employment benefit expense, provision
for bonuses, leave and holiday THR entitlements 864,471
99,394 -
963,865 Allowance for impairment loan losses
919,733 50,726
- 869,007
Allowance for impairment losses on financial assets other than loans
379,792 30,388
- 410,180
Unrealised losses on decrease in fair value of marketable securities and
government bonds available for sale 347,528
- 207,712
139,816 Allowance for estimated losses arising from legal cases
125,778 24,842
- 100,936
Estimated losses on commitments and contingencies 39,562
532 -
39,030 Allowance for possible losses on abandoned properties
30,029 210
- 29,819
Allowance for possible losses on repossessed assets 1,994
- -
1,994 Accumulated losses arising from difference in
net realisable value of repossessed assets 1,969
- -
1,969 Unrealised losses on decrease in
fair value of marketable securities and government bonds fair value through profit or loss
108 1,393
- 1,501
Accumulated losses arising from difference in net realisable value of abandoned properties
189 -
- 189
Deferred tax assets 4,197,156
99,600 207,712
3,889,844 Deferred tax liabilities:
Unrealised gain on BOT transactions 57,709
37,441 -
20,268 Net book value of fixed assets
45,681 20,571
- 66,252
Deferred tax assets - Bank Mandiri only 4,093,766
82,730 207,712
3,803,324
Net deferred tax assets - Subsidiaries 228,732
385,796 Total consolidated deferred tax assets - net
4,322,498 4,189,120
Deferred tax assets are calculated using applicable tax rate or substantially enacted tax rate at consolidated statement of financial position dates.
Management believes that it is possible that future taxable income will be available against the temporary difference, which results in deferred tax assets, can be utilised.
f. Tax on fixed assets revaluation
Bank through letter No. FST10422015 dated December 8, 2015 has filed to the tax office, an application of fixed assets revaluation for tax purposes were filed in 2015 by taxpayers who have not
been revalued fixed assets. Based on the Regulation of the Minister of Finance No. 191PMK.0102015 dated October 15, 2015
the application filed until the date of December 31, 2015, will receive special treatment in the form of final income tax of 3. In this regard, the Bank has estimated the fair value of fixed assets such as
land and later on increase in fair value compared to the book value of existing fixed assets, the Bank has made tax payments amounting to Rp693,277 on December 11, 2015, although it has not been
approved from the Tax Office. The tax payments are recorded as prepaid taxes as of December 31, 2015.
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2015 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated
138
33. TAXATION continued
g. Tax assessment letters
Fiscal year 2013 Based on verification process done by Tax office, on December 16, 2014, Tax Office issued Tax
Underpayment Assessment Letter SKPKB which stated underpayment of corporate tax expense in relation to the use of tax rate for 2013 fiscal year of Rp1,313,347 including penalties.
Management disagree with the Tax Underpayment Assessment Letter and has submitted an objection letter to Tax Office dated March 10, 2015. Bank has paid all the tax underpayment amount
and recorded it as prepaid tax on December 31, 2015 and 2014. Until the date of the these consolidated financial statements, the tax objection is still in progress.
Fiscal year 2010 Based on tax audit result, on December 6, 2012, the Bank received Tax Underpayment Assessment
Letters SKPKB which stated underpayments of corporate income tax related with loan write-offs and Value Added Tax VAT and Tax Collection Letter penalties STP for fiscal year 2010 totalled to
Rp1,108,071. Management disagree with the Tax Underpayment Assessment letter result and on March 4, 2013,
Bank has submitted an objection letter to the tax office.The Bank has paid all the tax underpayment which recorded as prepaid tax as of December 31, 2015 and 2014.
On December 2013, the Tax Office issued a decision letter to the Banks objection letters on VAT above and partially accepted the Banks objection, therefore the Tax office refunded a portion of
prepaid tax related to VAT. The Bank disagreed with the above decision letter and has submitted an appeal for on the above decision letter to the Tax Court in March 2014. Until the date of this
consolidated financial statements, the tax court is still on progress.
On February 21, 2014, Tax Office issued a decision letter to the Banks objection letters on tax underpayment on corporate income tax and Tax Office rejected the objection. The Bank has filed an
appeal against the objection decision letter to the Tax Court on May 19, 2014. Until the date of these consolidated financial statements, the appeal in tax court is still on progress.
h. Tax collection letter Fiscal year 2014
Based on assesment process done by Tax Office on December 29, 2015, Tax Office issued Tax Collection Letter STP which stated underpayment of corporate tax expense for 2014 fiscal year of
Rp1,459,120 and penalties of Rp233,459. Management disagree with the Tax Collection Letter and Bank has submitted an application letter for
cancellation Tax Collection Letter to Tax Office on December 31, 2015. Bank has paid all the tax underpayment of Rp1,459,120 and recorded it as prepaid tax on December 31, 2015. Until the date
of these consolidated financial statements, Bank is still waiting for the result on the above concellation request.
