SEC Form 20-IS - iRemit Global Remittance

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The amounts payable to PSAGL pertain to cash advances for Parent Company’s trading
transactions. These are non-interest bearing and are due on demand.
Advances from IAPL include unremitted dividend income from dividends declared by WEPL.
This is non-interest bearing and is due on demand.
As of December 31, 2011 and 2010, no provision for credit losses has been recognized for the
amounts due from related parties.
In 2010, the Parent Company recognized dividend income amounting P=0.60 million from
dividends declared by ISPL. In 2009, the Parent Company’s dividend income includes dividends
declared by ISPL (P=14.40 million), IRCL (P=9.54 million), WEPL (P=3.93 million), IAPL (P=3.30)
and PSAGL (P=3.07 million).
The compensation of the key management personnel of the Parent Company in 2011, 2010 and
2009 are as follows:
2011 2010 2009
Short-term employee benefits P=21,310,932 P=19,605,330 P=17,836,472
Post-employment benefits 1,571,444 549,541 721,632
Share-based payment − – 435,303
P=22,882,376 P=20,154,871 P=18,993,407
23. Income Taxes
The provision for income tax consists of:
2011 2010 2009
Current
RCIT P=23,174,172 P=15,785,947 P=25,662,740
Final 589,871 643,945 1,534,105
P=23,764,043 P=16,429,892 P=27,196,845
Republic Act (RA) No. 9337, An Act Amending National Internal Revenue Code, provides that the
RCIT rate shall be 35.00% until December 31, 2008. Starting January 1, 2009, the RCIT rate shall
be 30.00%. It also provides that the interest allowed as a deductible expense is reduced by an
amount equivalent to 42.00% until December 31, 2008 and 33.00% starting January 1, 2009 of
interest income subjected to final tax.
An MCIT of 2.00% on modified gross income is computed and compared with the RCIT. Any
excess of the MCIT over the RCIT is deferred and can be used as a tax credit against future
income tax liability for the next three years. In addition, current tax regulations provide for the
ceiling on the amount of entertainment, amusement and recreation (EAR) expenses that can be
claimed as a deduction against taxable income. The actual EAR expenses incurred by the Parent
Company was P=4.46 million, P=2.84 million and P=2.62 million in 2011, 2010 and 2009,
respectively. The allowed EAR limit was P=4.90 million, P=4.63 million and P=4.73 million in 2011,
2010 and 2009, respectively. Under the regulation, EAR expenses allowed as deductible expense
for taxpayers engaged in the sale of services, including exercise of profession and use of lease
properties, like the Parent Company, is limited to the actual EAR paid or incurred but not to
exceed 1.00% of net revenue.
*SGVMC116501*