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Sunday, May 23, 2010
Mining Super tax.
They don't want the tax of course but, the miners are against the super tax on ‘pre-tax (net) profits’ I believe. These might come first (as a virtual cost) with income tax on the balance. First or last the money outcome remains the same. E.g 1000 less 40% = 600 less 30%= 420. Again 1000 less 30%= 700 less 40% = 420 – the same. Super tax on ‘pre-tax profits’ coming early on, suggests a cash flow reason. They want to have maximum funds available for immediate expansion while prices are high. That’s my guess.
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