Vision - Alibaba

146 Annual Report 2007
Notes to the Financial Statements
30 DEFERRED TAX ASSETS (Continued)
Deferred tax liabilities
Deferred costs
RMB’000
As of January 1, 2006 (24,271)
Charged to the income statement (16,331)
As of December 31, 2006 (40,602)
Charged to the income statement (4,709)
As of December 31, 2007 (45,311)
Deferred tax assets are recognized for tax losses carried forward to the extent that realization of related
tax benefi ts through future taxable profi ts is probable. The Group’s major operating subsidiary, Alibaba
China, used a tax rate of 15% in the computation of deferred tax assets as of December 31, 2007 (Note
13). In addition, the Group did not recognize deferred income tax assets of RMB34,220,000 (2006:
RMB33,422,000) in respect of the accumulated tax losses of subsidiaries incorporated in Hong Kong and
the United States, subject to the agreement of the relevant tax authorities, amounting to RMB168,785,000
(2006: RMB161,020,000). These tax losses are allowed to be carried forward to offset against future taxable
profi ts. Carry forward of tax losses in Hong Kong has no time limit, while the tax losses in United States will
expire, if unused, in the years ending December 31, 2020 through 2021.
The Group did not recognize deferred income tax assets of RMB26,776,000 (2006: RMB36,802,000) in
respect of the accumulated tax losses of subsidiaries incorporated in the PRC, subject to the agreement of
the PRC tax authorities, amounting to RMB108,756,000 (2006: RMB111,520,000). Carry forward of these
tax losses will expire, if unused, in the years ending December 31, 2008 through 2012.
31 CONTINGENCIES
As of December 31, 2007, the Group did not have any material contingent liabilities or guarantees (2006:
Nil).