SEC Form 17-A: Annual Report - the solid group inc website

- 61 -
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.
2012 2011 2010
Tax on pretax profit at 30% P 455,342,115 P 172,057,237 P 109,924,527
Adjustment for income subject
to lower tax rates ( 13,388,166) ( 6,615,150) ( 17,302,712 )
Tax effects of:
Benefit from previously
unrecognized net operating loss
carry-over (NOLCO) MCIT
and other temporary differences ( 142,098,292) ( 26,314,832) ( 47,588,087 )
Excess of optional standard
deduction (OSD) over itemized
deduction ( 27,893,962) - -
Nontaxable income ( 2,640,899) ( 11,209,655) ( 5,563,691 )
Derecognized and unrecognized
deductible temporary
differences 3,233,154 7,975,800 4,004,029
Nondeductible expenses and losses 2,513,046 5,437,096 9,597,237
Unrecognized deferred taxes
from NOLCO and MCIT 567,373 1,430,215 4,060,303
Income (loss) of foreign subsidiary not
subject to taxes ( 547,491) 9,739,812 62,238,190
Reversal of previously
recognized DTL - ( 11,409,417) -
Loss on non-recoverable
foreign currency losses - - 958,240
Unrecognized benefit from
write-off of receivables - - 3,735
Others 1,77,916 ( 1,377,953) 2,935,047
P 276,164,794 P 139,713,153 P 123,266,818
The allocation of the tax expense relating to profit or loss from continuing and
discontinued operations in 2012 is shown below:
Note 2012 2011 2010
Continuing operations P 276,164,794 P 139,364,314 P 122,651,703
Discontinued operations 5 - 348,839 615,115
P 276,164,794 P 139,713,153 P 123,266,818