PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Nine months ended September 30, 2005 and 2004 Expressed in rupiah, unless otherwise stated
27
10. TAXATION continued 2005
2004
Reversal of trade discount 13,543,264,140
- Receivables written off during the period
2,559,747,925 -
Realization of recultivation expenses see Note 22l 384,145,397
- 120,152,280,046 135,887,128,703
Permanent differences Non-deductible expenses
Employees’ benefits 36,557,005,827
28,458,973,394 Donations
8,673,694,057 8,210,188,795
Public relations 2,684,259,368
5,167,343,154 Others
456,155,053 472,764,468
Equity in net losses earnings of associated companies - net
9,044,907,895 2,903,477,493
Income already subjected to final tax 10,446,410,099
6,672,865,645 46,969,612,101
32,732,926,673 Estimated taxable income of the Company
705,808,680,555 160,442,932,735
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 908,863,281,660 1,518,851,457,159
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 2,674,795,100
6,231,079,300 Total current income tax expense
2,674,795,100 6,231,079,300
Deferred income tax expense benefit Company
251,692,145,104 92,924,692,325
Subsidiaries 1,331,878,820
373,326,943 Net income tax expense
250,360,266,284 93,298,019,268
Total 253,035,061,384
99,529,098,568
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Nine months ended September 30, 2005 and 2004 Expressed in rupiah, unless otherwise stated
28
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 2,674,795,100
6,231,079,300 Total
2,674,795,100 6,231,079,300
Prepayments of income tax Company
15,172,462,575 28,147,480,000
Subsidiaries 20,122,659,777
14,603,849,446 Total
35,295,122,352 42,751,329,446
Estimated claims for tax refund - presented as part of “Prepaid Taxes” in the
consolidated balance sheets Company
15,172,462,575 28,147,480,000
Subsidiaries 17,447,864,677
9,344,649,569
Total 32,620,327,252
37,492,129,569 Estimated Corporate Income Tax Payable
Subsidiary -
971,879,423
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. Moreover, the Tax Office also approved the Company’s 2002 claim for tax refund
amounting to Rp 10,359,940,562. 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 to the Tax Court 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
Nine months ended September 30, 2005 and 2004 Expressed in rupiah, unless otherwise stated
29
10. TAXATION continued
