SEC Form 20-IS - iRemit Global Remittance

- 51 -
The table below shows the income tax rates provided on the assessable profit for the year of each
subsidiary:
2011 2010
PSAGL 16.50% 16.50%
LSML 16.50% 16.50%
IAPL 30.00% 30.00%
WEPL 30.00% 30.00%
INZL 28.00% 30.00%
IGRL 21.00% 21.00%
IRCL 34.20% 34.20%
As of December 31, 2011 and 2010, the deferred tax assets and liability recognized by the Group
relates to the tax effects of the following:
2011 2010
Deferred tax assets on:
Unused tax losses P=4,980,348 P=3,669,877
Unused tax credits − 443,755
Accumulated depreciation − 119,288
Subtotal
Less deferred tax liability on:
4,980,348 4,232,920
Capital allowance 31,969 29,765
Net deferred tax assets P=4,948,379 P=4,203,155
The Parent Company did not set up deferred tax assets on the following temporary differences:
2011 2010
Temporary differences on:
Accrued interest expense P=1,994,506 P=2,074,213
Accrued courier charges − 393,793
Others 808,582 381,961
P=2,803,088 P=2,849,967
The management of the Parent Company believes that it is not highly probable that these
temporary differences will be realized in the future.
A reconciliation of the statutory income tax rates and the effective income tax rates in 2011, 2010
and 2009 follows:
2011 2010 2009
Statutory income tax 30.00% 30.00% 30.00%
Tax effects of:
Nondeductible (nontaxable) expenses
(income) (0.58) (1.62) (3.91)
Interest income subject to final tax (0.17) (0.34) (0.44)
Unrecognized deferred tax asset (0.04) (0.71) (1.82)
Difference in tax jurisdiction (8.33) 2.71 (0.77)
Effective income tax 20.88% 30.04% 23.06%
*SGVMC116502*