PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2013 and for the Year Then Ended
Figures in tables are expressed in billions of rupiah, unless otherwise stated
77
31. TAXATION continued
e. Tax assessment continued On August 10, 2010, the Tax Authorities filed a judicial review request to the SC for the Tax
Court’s acceptance of Telkomsel’s appeal on 2004 and 2005 VAT totaling Rp215 billion. In September 2010, Telkomsel filed a contra-appeal to the SC. As of the date of approval and
authorization for issuance of these consolidated financial statements, the judicial review is still in process.
In May and June 2012, Telkomsel received the refund of penalty of 2010 Income Tax Article 25 underpayment amounting to Rp15.7 billion based on the Tax Court’s verdict. On
July 17, 2012, the Tax Authorities filed a judicial review request to the SC on the Tax Court’s verdict. On September 14, 2012, Telkomsel filed a contra-appeal to the SC. As of the date of
approval and authorization for issuance of these consolidated financial statements, the judicial review is still in process.
In August 2012, the Tax Authorities accepted Telkomsel’s objection and refunded the whole claim for 2008 underpayment of VAT amounting to Rp232 billion including penalty of Rp81.9
billion.
On March 12, 2012, Telkomsel received assessment letters as a result of a tax audit for the fiscal year 2010 by the Tax Authorities. Based on the letters, Telkomsel overpaid corporate
income tax and underpaid VAT amounting to Rp597.4 billion and Rp302.7 billion including penalty of Rp73.3 billion, respectively. Telkomsel accepted the assessment on the
overpayment of corporate income tax and Rp12.1 billion of the underpayment of the VAT including penalty of Rp6.3 billion. The accepted portion was charged to the 2012
consolidated statement of comprehensive income. On April 5, 2012, Telkomsel received a refund for the overpayment of corporate income tax for fiscal year 2010 amounting to
Rp294.7 billion, net of underpayment of VAT. On May 24, 2012, Telkomsel filed an objection to the Tax Authorities for the underpayment of VAT of Rp290.6 billion including penalty of
Rp67 billion and recorded it as a claim for tax refund. On May 1, 2013, the Tax Authorities rejected Telkomsel’s objection. Subsequently, on July 29, 2013, Telkomsel filed an appeal to
the Tax Court. As of the date of approval and authorization for the issuance of these consolidated financial statements, the appeal is still in process.
In December 2013, the Tax Court accepted Telkomsel’s appeal on 2006 VAT and withholding taxes totaling Rp116 billion. The amount which was previously presented as part of claims for
tax refund is reclassified to advances and other non-current assets.
f. Deferred tax assets and liabilities
The details of the Company and subsidiaries deferred tax assets and liabilities are as follows:
Charged credited to the
consolidated Acquisition
statements of divestment
December 31, comprehensive
of December 31,
2012 income
subsidiaries 2013
The Company Deferred tax assets:
Provision for impairment of receivables 276
170 -
446 Net periodic pension and other post-retirement
benefits costs 129
84 -
213 Employee benefit provisions
173 30
- 143
Deferred connection fee 54
16 -
70 Accrued expenses and provision for
inventory obsolescence 22
5 -
27 Provision for early retirement expense
140 140
- -
Total deferred tax assets 794
105 -
899
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2013 and for the Year Then Ended
Figures in tables are expressed in billions of rupiah, unless otherwise stated
78
31. TAXATION continued
f. Deferred tax assets and liabilities continued
Charged credited to the
consolidated Acquisition
statements of divestment
December 31, comprehensive
of December 31,
2012 income
subsidiaries 2013
Deferred tax liabilities: Finance leases
64 73
- 9
Land rights, intangible assets, and others 14
3 -
11 Valuation of long-term investment
70 -
70 Difference between accounting and tax bases
of property and equipment 1,581
38 -
1,543 Total deferred tax liabilities
1,659 44
- 1,615
Deferred tax liabilities of the Company - net 865
149 -
716
Telkomsel Deferred tax assets:
Employee benefit provisions 206
48 -
254 Provision for impairment of receivables
118 4
- 122
Recognition of interest under USO arrangements 6
6 -
Total deferred tax assets 330
46 -
376 Deferred tax liabilities:
Intangible assets 44
18 -
62 Finance leases
22 99
- 121
Difference between accounting and tax bases of property and equipment
2,363 95
- 2,268
Total deferred tax liabilities 2,429
22 -
2,451 Deferred tax liabilities of Telkomsel - net
2,099 24
- 2,075
Deferred tax liabilities of other subsidiaries - net 95
109 9
213
Deferred tax liabilities - net 3,059
64 9
3,004 Deferred tax assets - net
89 71
78 82
Charged credited to the
consolidated statements of
December 31, comprehensive
Realized December 31,
2011 income
to equity 2012
The Company Deferred tax assets:
Provision for impairment of receivables 334
58 -
276 Employee benefit provisions
82 91
- 173
Provision for early retirement expense -
140 -
140 Net periodic pension and other post-retirement
benefit costs 86
43 -
129 Deferred connection fee
85 31
- 54
Accrued expenses and provision for inventory obsolescence
30 8
- 22
Total deferred tax assets 617
177 -
794
