Axiata Group Berhad - Annual Report 2016

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Axiata Group Berhad | Annual Report 2016 FINANCIAL STATEMENTS 218
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016
29. ASSOCIATES (CONTINUED)
List of contingent liabilities of an associate, Idea as at 31 December are as follows: (continued)
Description
Potential exposure
2016
RM’million
2015
RM’million
3. Revenue share license fee assessment
In 2014, the DoT has raised a demand notice to an associate for further payment of license fee in
respect of years of assessment (“YA”) 2011-2012 amounting to INR1.1 billion.
In previous financial year, the DoT has raised a demand notice to an associate for further payment of
license fee in respect of YA 2007-2008 amounting to INR1.5 billion and a demand cum show cause
notice for YA 2009-2012 amounting to INR14.0 billion.
In the opinion of the Directors, based on independent legal opinion and its evaluation, it is not probable
that the claim will materialise and therefore, pending outcome of matters, no provision has been
recognised.
1,096.6 1,072.4
4. Income tax demands
In 2015, an associate of the Group received two demands from income tax authorities in respect of
its income tax returns for the financial years 2008/09 and 2009/10 amounting to INR34,147.0 million
and INR6,408.0 million respectively. The tax demands are mainly on the difference between fair value
of investment made in Indus Towers Limited and net book value of the assets transferred to Idea
Infrastructure Services Limited (a 100.0% subsidiary of the associate, which further through a scheme
of merger got merged with Indus Towers Limited under High Court approved scheme). The associate
has filed an appeal against these demands at the Commissioner of Income Tax appeals.
During the financial year, the associate has received from income tax authorities in respect of its
income tax returns for the financial year 2011/12, 2013/14 and 2014/15 amounting to INR580.0 million,
INR9,900.0 million and INR18,900.0 million respectively. The tax demands are mainly on the account
of the amortisation of spectrum and revenue share license fee disallowed for tax purpose and non-
deduction of tax on distributors’ margin.
4,620.1 2,619.9
5. Other taxes, custom duties and demands under adjudication, appeal or disputes
As at 31 December 2016, other taxes, custom duties and demands under adjudication, appeal or
disputes amounted to approximately INR73.7 billion (2015: INR56.4 billion).
In the opinion of the Directors, based on independent legal opinion and its evaluation, it is not probable
that the claim will materialise and therefore, pending outcome of matters, no provision has been
recognised.
4,849.0 3,641.3
Total exposure 12,952.8 11,218.3
Total exposure of the Group 2,562.1 2,219.0