Crucial 2012 Annual Report Download - page 269

24
INOTERA MEMORIES, INC.
NOTES TO FINANCIAL STATEMENTS
(Continued)
Full valuation allowance was provided for most of the components of deferred tax assets as management
believes that they are not expected to be realized in future years.
(d) Under the ROC Statute for Upgrading Industries, the Company's unused investment tax credits as of December
31, 2011, were as follows:
Year Purchasing machinery and equipment Personnel training and research and development expenditures Expiry Year
2008 $ 1,587,701 22,788 2012
2009 376,714 29,250 2013
2010 1,998,486 — 2014
2011 380,619 — 2015
$ 4,343,520 52,038
ROC Income Tax Law provides an investment tax credit to companies that purchase certain types of equipment
and machinery. Such tax credit can be used to reduce by up to 50% of income tax liability for each of the four
years commencing from the year of equipment purchase, and can be used further to reduce by up to 100% of
such income tax liability in the fifth year.
(e) As of December 31, 2011, unused loss carry forward tax credits available to the Company were as follows:
Year Unused loss carry forward tax credits Expiry Year
2008 $ 16,011,859 2018
2009 12,234,762 2019
2010 12,494,223 2020
2011 19,982,506 2021
$ 60,723,350
(f) The Company's income tax returns have been examined by the ROC tax authority through 2009.