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DAro EnErgy 2013 AnnuAl rEporT
215
PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 555
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2013 AND 2012
Expressed in thousands of
S
S Dollars, unless otherwise stated
32. OPERATING EXPENSES
2013 2012
Selling and marketing Sales commission
41,330 48,258
Others 937
2,524 42,267
50,782
General and administrative Employee costs
51,793 53,806
Others 79,029
68,479 130,822
122,285 173,089
173,067
33. OTHER INCOMEEXPENSES, NET
2013 2012
Negative goodwill from business acquisition Note 4b 145,578
- Loss on goodwill impairment Note 15
101,877 -
Foreign exchange loss, net 53,198
12,315 Others
22,315 20,856
31,812 33,171
34. TAXATION
a. Prepaid taxes
2013 2012
Corporate income tax 144,229
113,967 VAT
42,487 28,939
186,716 142,906
b. Recoverable taxes
2013 2012
Vehicle fuel tax receivables 9,694
51,308 VAT Input
172 37,958
Deposit to Government 12,301
15,451 22,167
104,717 Less:
Current portion 9,866
89,266 Non-current portion
12,301 15,451
216
TVW
IABlE, STrong, EFFICIEnT
PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 556
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2013 AND 2012
Expressed in thousands of
X
S Dollars, unless otherwise stated
34. TAXATION continued
b. Recoverable taxes continued
Receivables relating to VAT input represent the balance of VAT input to be offset against the royalty payable due to the Government of Indonesia.
According to Government Regulation No. 1442000, which has been effective from 1 January 2001, raw coal prior to processing into briquettes is no longer subject to VAT. Since that date, Adaro has been unable to seek restitution
for VAT input. For the year ended 31 December 2013, Adaro has offset the claim for recoverable VAT input amounting to US44,466 2012: US157,121 against royalty payments due to the Government of Indonesia. From 1
January 2001 up to 31 December 2013, Adaro has offset cumulative claims for recoverable VAT input totaling US752,266 against royalty payables.
Based on the CCA, Adaro was subject to sales tax on services received, in accordance with the prevailing laws and regulations. However, with the enforcement of Law No. 8 of 1983 regarding VAT, the regulation on sales tax is no
longer valid.
Adaro is of the opinion that sales tax is different from VAT in both form and substance, and therefore VAT is a new tax. According to the provisions of the CCA, the Government will pay and assume and hold Adaro harmless from
new taxes. As such, management believes that Adaro can recover its VAT input in this manner and expects that the outstanding balance will be recovered in full. These consolidated financial statements do not include any
adjustments that might ultimately result from the decision made by the Government regarding this matter. Refer to Note 40c for further details.
In 2008, the Government of Indonesia through the Financial and Development Supervisory Board “BPKP”, commenced an audit to resolve this dispute on the offset of VAT paid against royalties payable for the years 2001 to
2007. However, as at the date of these consolidated financial statements, the formal result of this audit had not been issued by the Government of Indonesia. In September 2008, Adaro placed a fund amounting to Rp 150 billion
equivalent to US12,301 as a deposit in relation to the settlement of this dispute. Refer to Note 40c for further details.
In August 2009, BPKP continued its audit in relation to VAT and sales tax for the fiscal years prior to 2001, as well as the 2008 fiscal year. As at the date of these consolidated financial statements, the audit is still ongoing.
Management is of the opinion that the audit result will not have a material impact on the Group’s financial position and cash flow.
On 6 December 2012, the Minister of Finance issued Regulation No. 194PMK.032012 ”PMK 194”, which governs procedures of collecting, remitting and reporting of Sales Tax and the treatment of VAT andor Luxury Goods Sales
Tax on the first generation CCA contractors including Adaro and which has been effective since 1 January 2013. PMK 194 stipulates that the first generation of CCA contractors must collect, remit and report Sales Tax on the
utilisation of particular services as listed in this regulation. PMK 194 also stipulates that Value Added Tax andor Luxury Goods Sales Tax is not collected on the delivery of VAT-able goods andor services by a VAT-able
Entrepreneur to the contractors. The Group has complied with PMK 194 from 1 January 2013.
Vehicle fuel tax Pajak Bahan Bakar Kendaraan Bermotor“PBBKB” receivable represents the balance of PBBKB that Adaro believes should be compensated by the Government of Indonesia, since PBBKB is a new tax according to
the provisions of the CCA. For the year ended 31 December 2013, Adaro has offset the claim for vehicle fuel tax against royalty payments due to the Government of Indonesia amounting to US80,264 2012: US29,803. Until 31
December 2013, Adaro has offset cumulative claims for vehicle fuel tax against royalty payments due to the Government of Indonesia amounting to US127,562.
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DAro EnErgy 2013 AnnuAl rEporT
217
PT ADARO ENERGY Tbk AND SUBSIDIARIES Schedule 557
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2013 AND 2012
Expressed in thousands of
[
S Dollars, unless otherwise stated
34. TAXATION continued
c. Taxes payable
