XML 75 R19.htm IDEA: XBRL DOCUMENT
v2.4.0.6

TAXES PAYABLE | 12 Months Ended
--- | ---
Jun. 30, 2012
Taxes Payable [Abstract] |
Disclosure Of Taxes Payable [Text Block] | NOTE 12 – TAXES PAYABLE Enterprise Income Tax Effective January 1, 2008, the new Enterprise Income Tax (“EIT”) law of the PRC replaced the existing tax laws for Domestic Enterprises (“DES”) and Foreign Invested Enterprises (“FIEs”). The new EIT rate of 25% replaced the 33% rate that was applicable to both DES and FIEs. The two year tax exemption and three year 50% tax reduction tax holiday for production-oriented FIEs was eliminated. Since January 1, 2008, Jinong became subject to income tax in China at a rate of 15% as a high-tech company, as a result of the expiration of its tax exemption on December 31, 2007, and accordingly, it made provision for income taxes for the years ended June 30, 2012, 2011, and 2010 of $6,597,765, $5,157,185 and, $3,794,516, respectively, which is mainly due to the operating income from Jinong. Gufeng is subject to 25% EIT rate and thus it made provision for income taxes of $4,203,548, $3,879,959 and $0 for the years ended June 30, 2012, 2011 and 2010, respectively. Jintai has been exempt from paying income tax since its formation as it produces products which fall into the tax exemption list set out in the EIT. This exemption is expected to last as long as the applicable provisions of the EIT do not change. Value-Added Tax All of the Company’s fertilizer products that are produced and sold in the PRC were subject to a Chinese Value-Added Tax (VAT) of 13% of the gross sales price. On April 29, 2008, the PRC State of Administration of Taxation (SAT) released Notice #56, “Exemption of VAT for Organic Fertilizer Products”, which allows certain fertilizer products to be exempt from VAT beginning June 1, 2008. The Company submitted the application for exemption in May 2009, which was granted effective September 1, 2009, continuing through December 31, 2015. The VAT exemption applies to all agricultural products sold by Jintai, and all but a nominal amount of agricultural products sold by Jinong. Income Taxes and Related Payables Taxes payable consist of the following:
|  | June 30, |  |  | June 30, |
|  | 2012 |  |  | 2011 |
VAT provision (credit) |  | $ | 68,180 |  |  | $ | 40,495 |
Income tax payable |  |  | 17,274,817 |  |  |  | 6,593,876 |
Other levies |  |  | 332,392 |  |  |  | 370,494 |
Total |  | $ | 17,675,389 |  |  | $ | 7,004,865 |
Income Taxes in the Consolidated Statements of Income and Comprehensive Income The provision for income taxes consists of the following:
|  | June 30, |  |  | June 30, |  |  | June 30, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
Current tax - foreign |  | $ | 10,801,313 |  |  | $ | 9,037,144 |  |  | $ | 3,794,516 |
Deferred tax |  |  | - |  |  |  | - |  |  |  | - |
Total |  | $ | 10,801,313 |  |  | $ | 9,037,144 |  |  | $ | 3,794,516 |
The components of deferred income tax assets and liabilities as of June 30, 2012 and 2011 are as follows:
|  | 2012 |  |  | 2011 |
Deferred tax assets: |  |  |  |  |  |  |  |
Net operating loss |  | $ | 5,171,183 |  |  | $ | 3,230,899 |
Total deferred tax assets |  |  | 5,171,183 |  |  |  | 3,230,899 |
Less valuation allowance |  |  | (5,171,183 | ) |  |  | (3,230,899 | )
|  | $ | - |  |  | $ | - |
Tax Rate Reconciliation Our effective tax rates were approximately 20.5%, 21.5% and 15.1% for the year ended June 30, 2012, 2011 and 2010, respectively. Substantially all of the Company’s income before income taxes and related tax expense are from PRC sources. Actual income tax benefit reported in the consolidated statements of income and comprehensive income differ from the amounts computed by applying the US statutory income tax rate of 34% to income before income taxes for the years ended June 30, 2012, 2011 and 2010 for the following reasons:
FY2012 |  | China |  |  | United States |  |  |  |  |  |  |
|  | 15% - 25% |  |  | 34% |  |  | Total |  |  |  |
Pretax income (loss) |  | $ | 58,465,856 |  |  |  |  |  |  | $ | (5,706,718 | ) |  |  |  |  |  | $ | 52,759,138 |  |  |  |  |
Expected income tax expense (benefit) |  |  | 13,189,785 |  |  |  | 22.6 | % |  |  | (1,940,284 | ) |  |  | (34.0 | )% |  |  | 11,249,501 |  |  |  |  |
High-tech income benefits on Jinong |  |  | (4,439,873 | ) |  |  | (7.6 | )% |  |  | - |  |  |  | - |  |  |  | (4,439,873 | ) |  |  |  |
Losses from subsidiaries in which no benefit is recognized |  |  | 2,051,401 |  |  |  | 3.5 | % |  |  | - |  |  |  | - |  |  |  | 2,051,401 |  |  |  |  |
Change in valuation allowance on deferred tax asset from US tax benefit |  |  | - |  |  |  |  |  |  |  | 1,940,284 |  |  |  | 34.0 | % |  |  | 1,940,284 |  |  |  |  |
Actual tax expense |  | $ | 10,801,313 |  |  |  | 18.5 | % |  | $ | - |  |  |  | - | % |  | $ | 10,801,313 |  |  |  | 20.5 | %
FY 2011 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | China |  |  | United States |  |  |  |  |  |  |
|  | 15% - 25% |  |  | 34% |  |  | Total |  |  |  |
Pretax income (loss) |  | $ | 48,782,427 |  |  |  |  |  |  | $ | (6,831,182 | ) |  |  |  |  |  | $ | 41,951,245 |  |  |  |  |
Expected income tax expense (benefit) |  |  | 12,195,607 |  |  |  | 25.0 | % |  |  | (2,322,602 | ) |  |  | (34.0 | )% |  |  | 9,873,005 |  |  |  |  |
High-tech income benefits on Jinong |  |  | (3,416,976 | ) |  |  | (7.0 | )% |  |  | - |  |  |  | - |  |  |  | (3,416,976 | ) |  |  |  |
Losses from subsidiaries in which no benefit is recognized |  |  | 258,513 |  |  |  | 0.5 | % |  |  | - |  |  |  | - |  |  |  | 258,513 |  |  |  |  |
Change in valuation allowance on deferred tax asset from US tax benefit |  |  | - |  |  |  |  |  |  |  | 2,322,602 |  |  |  | 34.0 | % |  |  | 2,322,602 |  |  |  |  |
Actual tax expense |  | $ | 9,037,144 |  |  |  | 18.5 | % |  | $ | - |  |  |  | - | % |  | $ | 9,037,144 |  |  |  | 21.5 | %
FY 2010 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | China |  |  | United States |  |  |  |  |  |  |
|  | 15% - 25% |  |  | 34% |  |  | Total |  |  |  |
Pretax income (loss) |  | $ | 27,755,696 |  |  |  |  |  |  | $ | (2,671,463 | ) |  |  |  |  |  | $ | 25,084,233 |  |  |  |  |
Expected income tax expense (benefit) |  |  | 4,163,354 |  |  |  | 15.0 | % |  |  | (908,297 | ) |  |  | (34.0 | )% |  |  | 3,255,057 |  |  |  |  |
Income tax benefit of nontaxable income on Jintai |  |  | (396,034 | ) |  |  | (1.4 | )% |  |  | - |  |  |  | - |  |  |  | (396,034 | ) |  |  |  |
Income tax benefit of nontaxable income on Yuxing |  |  | 27,196 |  |  |  | 0.1 | % |  |  | - |  |  |  | - |  |  |  | 27,196 |  |  |  |  |
Change in valuation allowance on deferred tax asset from US tax benefit |  |  | - |  |  |  |  |  |  |  | 908,297 |  |  |  | 34.0 | % |  |  | 908,297 |  |  |  |  |
Actual tax expense |  | $ | 3,794,516 |  |  |  | 13.7 | % |  | $ | - |  |  |  | - | % |  |  | 3,794,516 |  |  |  | 15.1 | %

X
- Definition The entire disclosure for taxes payable during the period. + References No definition available. + Details
Name: | cga_DisclosureOfTaxesPayableTextBlock
Namespace Prefix: | cga_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Details
Name: | us-gaap_TaxesPayableCurrentAndNoncurrentAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration