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Annual report 2012 www.recope.com
Income Tax
The Income Statement shows revenues for the 2012 period
and thus determined how much income tax had to be paid
for this fiscal year, based on the provisions disposed in the
Tax Court Judgment No. TFA-504-2011-P and ratified by the
Administrative Court Decision No. 125-2012-VI. The deduction
of Investment Reserves does not apply for the calculation of
income tax, as required by Law 7722. As such, ARESEP did not
approve an ordinary price study that contemplated the amount
of investment reserves that could be deducted.
A US $1.854 thousand total was registered as the income tax
expense using the calculation guidelines described above.
However, upon elaboration and presentation of import tax
declarations, a ¢1329 million total was assigned.
As per Article No. 22 of the Income Tax Law; RECOPE must
perform partial cancellations during a year; No such cash
outlays were carried out in 2012, due to the fact that tax credits
were applied in RECOPE´s favor because of the 2% income
withholding tax made by customers.
The Tax Administration has been conducting a tax audit
regarding the implementation of income tax for the 2009 and
2010 periods (which has not been completed). This information
will be disclosed upon conclusion of this process.
Operating income and net income
The operating income accumulated up until December, 2012,
was US $12.466 thousand, when we add and subtracted other
incomes and expenses, the resulting net profit equals US
$3.078 thousand. When compared to net losses in December of
2011, which amounted to US $27.590 thousand, the company
demonstrates a better financial position in this period. If the
$1.854 tax income is subtracted from this net income, an
accumulated profit of US $1.223 thousand is left over. These
earnings were affected by the delays in price increases and the
advancements of price declines carried out by ARESEP as well as
the omission of the study regarding regular prices.