2011 Annual Report - the solid group inc website

60
The reconciliation of tax on pretax profit computed at the applicable statutory rate to tax
expense reported in the consolidated statements of income is shown below.
2011 2010 2009
Tax on pretax profit at 30% P 171,602,741 P 109,924,527 P 87,743,905
Adjustment for income subject
to lower tax rates ( 6,615,150) ( 17,302,712) ( 34,418,042 )
Tax effects of:
Benefit from previously
unrecognized NOLCO, MCIT
and deferred tax assets ( 26,314,832) ( 47,588,087) ( 32,929,923 )
Reversal of previously
recognized DTL ( 11,409,417) - -
Nontaxable income ( 11,209,655) ( 5,563,691) ( 19,275,138 )
Income (loss) of foreign subsidiary not
subject to taxes 9,739,812 62,238,190 31,810,188
Derecognized and unrecognized
deductible temporary
differences 7,975,800 4,004,029 15,170,833
Nondeductible expenses and losses 5,437,096 9,597,237 7,009,726
Unrecognized deferred taxes
from NOLCO and MCIT 1,430,215 4,060,303 7,018,190
Loss on non-recoverable
foreign currency losses - 958,240 486,363
Unrecognized benefit from
write-off of receivables - 3,735 -
Decrease in deferred tax assets
due to decrease in applicable
tax rates - - 717
Others ( 923,457) 2,935,047 44,643
P 139,713,153 P 123,266,818 P 62,661,462
The allocation of the tax expense relating to profit or loss from continuing and
discontinued operations in 2011 is shown below:
Note 2011 2010 2009
Continuing operations P 139,364,314 P 122,651,703 P 63,514,404
Discontinued operations 5 348,839 615,115 ( 852,942 )
P 139,713,153 P 123,266,818 P 62,661,462