PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2014 AND 2013
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5107 33. TAXATION continued
e. Deferred tax assets - net continued
2013
Beginning balance
Credited charged to
consolidated statement of
comprehensive income
Charged to equity
Ending balance
Bank Mandiri Deferred tax assets:
Loans write-off until 2008 1,707,651
221,648 -
1,486,003 Allowance for impairment loan losses
850,527 69,206
- 919,733
Allowance for impairment losses on financial assets other than loans
296,370 83,422
- 379,792
Provision for post-employment benefit expense, provision for bonuses, leave and holiday THR entitlements
720,872 143,599
- 864,471
Allowance for estimated losses arising from legal cases 112,496
13,282 -
125,778 Estimated losses on commitments and contingencies
37,223 2,339
- 39,562
Allowance for possible losses on abandoned properties 33,940
3,911 -
30,029 Allowance for possible losses on repossessed assets
1,994 -
- 1,994
Accumulated losses arising from difference in net realisable value of abandoned properties
2,069 1,880
- 189
Accumulated losses arising from difference in net realisable value of repossessed assets
1,969 -
- 1,969
Unrealised losses on increasedecrease in fair value of marketable securities and
Government Bonds available for sale 101,158
- 246,370
347,528
Deferred tax assets 3,866,269
84,409 246,370
4,197,048 Deferred tax liabilities:
Unrealised gain on BOT transactions 54,590
3,119 -
57,709 Unrealised gainlosses on increasedecrease in
fair value of marketable securities and Government Bonds fair value through profit or loss
1,102 1,210
- 108
Net book value of fixed assets 33,466
12,215 -
45,681
Deferred tax assets - Bank Mandiri only 3,777,111
70,285 246,370
4,093,766
Net deferred tax assets - Subsidiaries
189,502 228,732
Total consolidated deferred tax assets - net 3,966,613
4,322,498
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 assessment letters
Fiscal Year 2013
Based on verification process done by Tax office, on 16 December 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 will submit an objection letter to Tax Office. Bank has paid all the tax underpayment amount and recorded it as prepaid tax
on 31 December 2014.
Fiscal Year 2010
Based on tax audit result, on 6 December 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 including penalties.
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2014 AND 2013
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5108 33. TAXATION continued
f. Tax assessment letters continued
Fiscal Year 2010 continued
Management disagree with the Tax Underpayment Assessment letter result and on 4 March 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 at 31 December 2014 and 2013.
On December 2013, the Tax Office issued a decision letter to the Bank’s objection letters on VAT above and partially accepted the Bank’s objection, therefore the Tax office refunded a portion of
prepaid tax related to value added tax. 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 21 February 2014, Tax Office issued a decision letter to the Bank’s 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 19 May 2014. Until the date of this consolidated financial statements, the tax court is still on progress.
34. EMPLOYEE BENEFIT LIABILITIES
2014 2013
Rupiah - Provision for post-employment benefit Note 50
2,234,193 1,965,656
- Provisions for bonuses, leave and holiday entitlements 2,946,967
2,619,413 5,181,160
4,585,069
The provision for post-employment benefit such as pension fund and other long term remuneration is according to Bank and Subsidiaries’ policy which had been calculated using actuarial calculation.
35. OTHER LIABILITIES
2014 2013
Rupiah: Liability to policyholders
3,144,685 1,955,475
Payable to customers 2,018,396
1,271,409 Non controlling interest from Subsidiary’s mutual fund consolidation
1,152,424 857,009
Liability related to ATM and credit card transaction 966,018
1,001,071 Guarantee deposits
737,225 744,712
Deferred income directly attributable 501,082
555,001 Deferred income not directly attributable
242,143 181,831
Customers transfer transaction 57,367
138,046 Payable from purchase of marketable securities
13,201 726
Others 4,320,549
4,624,750 Total Rupiah
13,153,090 11,330,030
Foreign currencies: Guarantee deposits
1,178,359 1,357,207
Customers transfer transaction 555,859
535,090 Deferred income not directly attributable
422,854 447,467
Other liabilities related to UPAS transactions 796,728
283,127 Deferred income directly attributable
1,936 5,813
Others 261,860
207,480 Total foreign currencies Note 61B.v
3,217,596 2,836,184
16,370,686 14,166,214
Liabilities to policyholders consists of Subsidiaries’ AXA Mandiri Financial Services and Mandiri AXA General Insurance and PT Asuransi Jiwa InHealth Indonesia liability for future policy benefits for non
unit-linked policyholders, claim payables, unearned premium income and estimated claim liabilities, amounting to Rp1,724,888, Rp93,824, Rp954,692 and Rp371,251 as at 31 December 2014 and
amounting to Rp1,368,306, Rp35,394, Rp399,103 and Rp152,672 as at 31 December 2013.