NOTES TO FINANCIAL STATEMENTS 31 December 2025 8 TRADE AND OTHER RECEIVABLES (cont’d) (e) The balance mainly pertained to tax recoverable of US$17.6 million (2024 : US$7.9 million) with respect to a subsidiary of the Group. These amounts mainly arise from payments made in relation to tax underpayment assessments by the ITO for payments made to an independent third party for land-use-rights for a mining concession, which the ITO has treated as related party transaction. The recoverable balance reflects multiple assessments and ongoing disputes for various financial years, as detailed below. On 19 August 2024, the ITO issued underpayment assessments of corporate income tax, withholding taxes and VAT for the financial year ended 2020 of US$7.9 million, which the subsidiary had paid on 17 September 2024. An objection had been filed on these tax corrections on 16 November 2024, which was rejected in August 2025. An appeal was filed in October 2025 for the corporate income tax and withholding taxes for the financial year ended 2020 of US$7.2 million. In May 2025, the ITO assessed that corporate income tax and withholding taxes for the financial year ended 2023 of US$4.6 million has been underpaid. An objection had been filed on these tax corrections in July 2025, with a decision expected to be issued within 12 months from the filing of the objection. On 30 December 2025, the ITO issued an underpayment assessment of corporate income tax and withholding taxes for the financial year ended 2021 of US$5.7 million, which the subsidiary has paid in January 2026. The subsidiary is in the process to object the tax correction. Management had sought the advice of professional tax consultants in relation to the tax recoverable balances of the Group and maintains the view that it has reasonable position to support its claim under the prevailing tax laws. (f) Included in the balance of other receivables from third parties is US$18 million, which is the consideration for the disposal of PT Sumber Bara Jaya (Note 42). On 8 January 2026, the entire receivable has been assigned to the sellers of PT Trans Maritim Pratama (“TMP”) and PT Bahari Segara Maritim (“BSM”), as part of the terms of the conditional share purchase agreements (Note 43). The assignment of the receivable was on a non-recourse basis with no clawback provision. Accordingly, all risks and rewards of the receivables has been transferred to the sellers of TMP and BSM after the financial year. 9 DEPOSITS AND PREPAYMENTS Group Company 2025 2024 2025 2024 US$ US$ US$ US$ Current assets: Prepayments 7,202,051 22,193,008 615,365 348,340 Deposits (a) (b) 39,352,521 30,000,000 - - Advance payments for purchase of coal - 1,346,788 - - Less: Impairment loss on advance payments for purchase of coal (c) - (1,346,788) - - - - - - Total 46,554,572 52,193,008 615,365 348,340 Non-current assets: Deposits 16,766 3,313 13,292 840 Prepayments (d) 4,980,697 14,297,673 - - Advance payments for purchase of property, plant and equipment 4,388,170 7,114,764 - - Total 9,385,633 21,415,750 13,292 840 89 GEO ENERGY | ANNUAL REPORT 2025
RkJQdWJsaXNoZXIy NTkwNzg=