SAPPI LTD (SAP) 6-K

A reconciliation of income tax expense (benefit) computed at the statutory rate applicable in Finland of 26% for the six months ended 30 June 2008 and 2007
to the Company’s reported income tax benefit for each respective period is as follows:
2008 2007
Income tax expense (benefit) computed at
The Finland statutory rate (11,356) (3,480)
Taxes for the prior periods (62) -
Difference between Finnish and foreign rates (759) (480)
Tax losses with no tax benefit 6,415 1,555
Other adjustments (73) (208)
Tax expense in income statement (5,835) (2,613)
Note 3 - Changes in property, plant and equipment
The following shows the components of changes in property, plant and equipment for the six months ended 30 June, 2008 and 2007:
2008 2007
Book value 1 January 670,492 565,750
Increases 14,604 56,187
Decreases (177) (6,206)
Depreciation and amortisation (37,440) (94,084)
Impairment charges and reversal of impairment
charges - 151,000
Translation differences 2,052 (2,155)
Book value at 30 June 649,531 670,492
In December 2007, primarily because of a significant increase in the estimated long term sales prices of wood free coated paper, uncoated paper and magazine
paper, and partially resulting from a decrease in excess paper capacity during the year, the Company recognised a reversal of impairment losses previously
recognised on long lived assets in the amount of EUR 151,000. The recoverable amount of the cash generating unit at 30 June 2008 has been calculated on a
value in use basis.
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