PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Six months ended June 30, 2007 and 2006 Expressed in rupiah, unless otherwise stated
28
11. TAXATION continued
c. The details of corporate income tax expense benefit are as follows:
2007 2006
Current Company
142,403,785,700 55,181,043,200
Subsidiaries 3,953,891,500
5,292,270,000 146,357,677,200
60,473,313,200 Deferred
Company 13,146,206,079
96,637,292,683 Subsidiaries
1,112,641,808 526,610,398
12,033,564,271 96,110,682,285
Total 158,391,241,471
156,583,995,485
d. The calculation of estimated claims for income tax refund is as follows:
2007 2006
Current income tax expense Company
142,403,785,700 55,181,043,200
Subsidiaries 3,953,891,500
5,292,270,000 Total
146,357,677,200 60,473,313,200
Prepayments of income tax Company
97,533,910,337 46,430,809,910
Subsidiaries 6,530,032,395
5,589,119,241 Total
104,063,942,732 52,019,929,151
Estim ated claims for income tax refund - presented as part of “Prepaid Taxes” in the consolidated
balance sheets Company
- -
Subsidiaries 2,597,177,005
1,535,908,742 Total for the current year
2,597,177,005 1,535,908,742
Claims for income tax refund from prior years: Company
2005 -
10,414,347,316 Subsidiaries
3,027,171,528 12,044,484,143
Total 5,624,348,533
23,994,740,201
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Six months ended June 30, 2007 and 2006 Expressed in rupiah, unless otherwise stated
29
11. TAXATION continued
In March 2007, the Company received a decision letter from the Tax Office wherein the Tax Office approved to refund the claim for 2005 income tax and increased the 2005 taxable income by
Rp16,328,657,367. Out of the said total amount of assessment, Rp5,292,461,212 will be contested by the Company. In addition, the Company also received withholding tax Article 26 and value added
tax assessments for 2005, whereby, according to the Tax Office, the Company has to pay additional taxes and penalties totalling Rp8,916,678,829. The Company has contested the result of the tax
assessments. In March 2006, the Company received a decision letter from the Tax Office wherein the Tax Office
approved to refund the claim for 2004 income tax and increased the 2004 taxable income to Rp57 ,969,361,654. The difference of Rp6,359,790,385 between the amount of taxable income
approved by the Tax Office and the amount reported was recognized as an adjustment to the Company’s tax loss carryforward in 2006.
In December 2006, DAP received a decision letter from the Tax Office wherein the Tax Office approved to refund DAP’s 2005 claim for tax refund amounting to Rp5,849,231,775.
In April 2006, DAP received a decision letter from the Tax Office wherein the Tax Office approved to refund DAP’s 2003 claim for tax refund amounting to Rp3,824,659,200, out of the total claim of
Rp3,830,534,868.
In March 2006, DAP received a decision letter from the Tax Office wherein the Tax Office approved to refund DAP’s 2004 claim for tax refund amounting to Rp2,946,642,366, out of the total claim of
Rp2,991,878,166.
In February 2004, DAP received a decision letter from the Tax Office wherein the Tax Office approved to refund DAP’s 2002 claim for tax refund amounting to Rp6,195,133,712, out of the total
claim of Rp11,605,908,212. DAP has contested the result of the tax assessment and the disapproved portion of the claim has remained as part of “Prepaid Taxes” in the 2005 consolidated
balance sheet. Furthermore, on August 16, 2006, the Tax Court issued a decision in favor of DAP and the refund was received by DAP in October 2006. The Tax Office , however, asked for a judicial
review by the Supreme Court. As of June 30, 2007 , the Supreme Court has not rendered any decision on the matter.
e. The reconciliation between income before corporate income tax expense after the reversal of inter - company eliminating entries during consolidation multiplied by the applicable tax rate and
corporate income tax expense as shown in the consolidated statements of income for the six months ended June 30, 2007 and 2006 is as follows:
2007 2006
Income before corporate income tax expense 518,536,440,102
499,562,430,434 Reversal of inter-company eliminating entries
during consolidation 1,506,409,592
2,443,591,946 Combined income, net of loss, before income tax
of the Company and Subsidiaries 517,030,030,510
497,118,838,488
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Six months ended June 30, 2007 and 2006 Expressed in rupiah, unless otherwise stated
30
11. TAXATION continued 2007
