PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2007 and 2006 Expressed in millions of Rupiah, unless otherwise stated
130
56. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES continued
e. Legal Matters continued In this matter, Bank Mandiri has an opinion that the Bank does not have the obligation to fulfill the
customer’s request and decides not to pay the customer, since not one of Bank Mandiri’s employeesofficials have been named as the accuseddefendant, and there is no court verdict obliging
Bank Mandiri to pay to the customer. Furthermore, Bank Mandiri has an opinion that in relation to the content of the above letter, there is no
liability that should be acknowledged or adjustment that should be made in the financial statement of PT Bank Mandiri Persero Tbk. and Subsidiaries as of December 31, 2007.
The Bank’s total potential exposure arising from outstanding lawsuits as of December 31, 2007 and 2006 amounts to Rp2,529,424 and Rp2,331,607, respectively. As of December 31, 2007 and 2006,
Bank Mandiri has provided a provision included in “Other Liabilities” for a number of lawsuits involving Bank Mandiri amounting to Rp205,742 and Rp316,277, respectively Note 28. Management believes
that the provision is adequate to cover possible losses arising from pending litigation, or litigation cases currently in progress.
f. Value Added Tax VAT on Bank Syariah Mandiri Murabahah Transaction There is a different way of looking at Tax on murabahah transaction between Directorate General
Taxes DGT Tax Audit Team with Bank Syariah Mandiri BSM. The DGT Tax Audit Team conclude that murabahah transaction is an object of VAT according to Law
No. 8, 1983 regarding Value Added Tax on Goods and Services and Sales Tax on Luxury Goods and the latest revision No. 18 year 2000 article 1A paragraph 1. In connection with this, the tax office
issued an under payment tax assessment letter SKPKB No. 000322070207304 on December 13, 2004 of Rp25,542 from the VAT tax year 2003 pertaining to murabahah transaction conducted by
BSM. BSM conclude that murabahah is a banking transaction which is excluded from VAT, according to
Law No. 8, 1983 regarding Value Added Tax on Goods and Services and Sales Tax on Luxury Goods and the latest revision No. 18 year 2000 article 4A paragraph 3 point d, stated that banking
transaction is not a VAT object and this is also in accordance with Government Regulation No. 144 year 2000 article 5 point d.
On January 10, 2005, BSM submitted an objection for such SKPKB. Referring to the objection, on December 1, 2005 DGT issued a refusal decision letter No. Kep-277PJ.542005.
The Association of Bank Syariah Indonesia ASBISINDO agree with BSM and on August 3, 2005 ASBISINDO submitted a letter No. 58KU-DPP08.05 to DGT and requested that VAT should not be
imposed on financing with murabahah scheme by syariah banking.
In an attempt to solve the problem regarding the difference of VAT on murabahah transaction, BSM has arranged a meeting with ASBISINDO, Bank Indonesia and other related institute, but until now it
still being discussed and no decision yet. Therefore, BSM has not made any provision for the under payment
of VAT
as stated
in under
payment tax
assessment letter
SKPKB No. 000322070207304 from the 2003 VAT of Rp25,542 or any obligation related to the Value
Added Tax VAT on Murabahah Transaction.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2007 and 2006 Expressed in millions of Rupiah, unless otherwise stated
131
56. SIGNIFICANT AGREEMENTS, COMMITMENTS AND CONTINGENCIES continued
