Re: Answer Me This......Tax Computation
in response to
by
posted on
Dec 29, 2007 05:34PM
The company whose shareholders were better than its management
Nijinsky70...
I am not sure of how you got your tax computation...I don't think it is that straight forward. I have not seen anything about how they compute the tax....but my understanding is that the windfall tax will be $ 70 dollars in your calculation and that $ 70 will be tax deductible when they calculate the corporate income tax for the period ( year).
Without knowing all the costs to be deducted you will not know what the corporate profit will be upon which the corporate tax will be paid...but YOU WILL HAVE TO PAY THE $70..no matter what kind of profit your company makes(if any).
This is only what I gather from all that I have read up to this time and can be way off base...I hope I am wrong but if I am right the affect of the Windfall Tax will be huge if the base price it is set at is not real high ( a price at least twice where it is at today).
If the base price is set at say $850 I think we (ARU) and other developers in Ecuador are in trouble as there is no way a major will buy this company with a 70% wpt with a base at $ 850.....at least not at $ 20 a share or more...
If this is the case and my opinion of how the tax works is correct then I see trouble ahead....and a buyout price below $ 20 and closer to $ 10 per share...
All this is just my opinion of how I figure what the tax would be...