PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Six months ended June 30, 2006 and 2005 Expressed in rupiah, unless otherwise stated
27
10. TAXATION continued
c. The details of corporate income tax expense benefit are as follows:
2006 2005
Current Company
55,181,043,200 -
Subsidiaries 5,292,270,000
956,348,900 60,473,313,200
956,348,900 Deferred
Company 96,637,292,683
143,715,404,792 Subsidiaries
526,610,398 253,363,508
96,110,682,285 143,968,768,300
Total 156,583,995,485
144,925,117,200
d. The calculation of estimated claims for income tax refund is as follows:
2006 2005
Current income tax expense Company
55,181,043,200 -
Subsidiaries 5,292,270,000
956,348,900 Total
60,473,313,200 956,348,900
Prepayments of income tax Company
46,430,809,910 3,971,039,274
Subsidiaries 5,589,119,241
4,423,067,367 Total
52,019,929,151 8,394,106,641
Estimated claims for income tax refund - presented as part of “Prepaid Taxes” in the
consolidated balance sheets Company
- 3,971,039,274
Subsidiaries 1,535,908,742
3,466,718,467 Total for the current year
1,535,908,742 7,437,757,741
Claims for income tax refund from prior years: Company
2005 10,414,347,316
- 2004
- 8,328,177,255
Subsidiaries 12,044,484,143
12,687,723,375
Total 23,994,740,201
28,453,658,371
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Six months ended June 30, 2006 and 2005 Expressed in rupiah, unless otherwise stated
28
10. TAXATION continued
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 March 2005, the Company received a decision letter from the Tax Office wherein the Tax Office
approved to refund the claim for 2003 income tax and increased the 2003 taxable income to Rp758,843,760,148. The difference of Rp13,012,856,409 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 2005.
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.
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 consolidated
balance sheets.
e. The reconciliation between income before corporate income tax expense 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, 2006 and 2005 is as follows:
2006 2005
Income before corporate income tax expense 499,562,430,434
452,545,072,133 Reversal of inter-company consolidation eliminations
2,443,591,946 4,232,133,726
Combined income, net of loss, before income tax of the Company and Subsidiaries
497,118,838,488 448,312,938,407
Tax expense at the applicable tax rate 149,065,651,380
134,476,381,363 Tax effects on permanent differences:
Non-deductible expenses 10,484,702,093
9,570,424,830 Income already subjected to final tax
4,414,742,954 2,502,625,606
Equity in net earnings of associated companies - net
459,552,150 522,920,310
Tax corrections 1,907,937,116
3,903,856,923
Corporate income tax expense per consolidated statements of income
156,583,995,485 144,925,117,200
PT INDOCEMENT TUNGGAL PRAKARSA Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Six months ended June 30, 2006 and 2005 Expressed in rupiah, unless otherwise stated
29
10. TAXATION continued
