2002 Annual Report - Turkish Airlines

82 • 2002 TURKISH AIRLINES annual reportTURKISH AIRLINES INC.NOTES TO THE FINANCIAL STATEMENTS / continued(all figures are restated to TL money values at December 31, 2002 pursuant to IAS 29)20- ADVANCED TICKET SALESDecember 31, 2002 December 31, 2001TL 000,000 TL 000,000Advanced Ticket Sales 68,287,942 67,786,885Provision for Mile Liability resulting from Sales of Mileage 15,529,572 -83,817,514 67,786,88521- OTHER ACCRUED LIABILITIESOther accrued liabilities consist of the following:December 31, 2002 December 31, 2001TL 000,000 TL 000,000Sales Incentive Accrual 16,688,035 9,816,719Fuel Oil Privilege Expense Accrual 6,435,117 -Accrued Salaries 14,212,404 10,660,624Accrued Maintenance Costs 12,535,055 16,223,653Accrued Frequent Flyer Liability 11,848,477 5,859,609Provision for Legal Claims 3,480,894 3,690,849Internal Insurance Risk Provision 2,136,186 960,092Other Liabilities 98,617 1,070,43967,434,785 48,281,98522- INCOME TAXES PAYABLEAccording to the Turkish tax legislation, the corporate tax rate is 30% plus 10% tax surcharges of the relevant tax amount. Additional withholding taxesare deductible from any dividends distributed. Investment incentive amounts are deductible from profit subject to corporate tax, but they are subjectto withholding tax of 18% plus surcharges (an effective rate of 19.8%).The effective tax rate is estimated as 33% for 2002 and 19.8% for 2001.Corporate Tax Payable/ (Prepaid Taxes) is as follows:December 31, 2002 December 31, 2001TL 000,000 TL 000,000Corporate Tax Payable 32,398,092 -Prepaid Taxes and Funds (40,930,793) -(8,532,701) -Major Components of Tax Expense:December 31, 2002 December 31, 2001TL 000,000 TL 000,000Current Tax Expense (32,398,092) -Deferred Tax Expense (49,557,664) (7,836,726)Tax Expense (81,955,756) (7,836,726)