OTCPK:IAUFF - Post by User
Post by
b00gn1shon May 02, 2010 12:05pm
405 Views
Post# 17053652
Australia 40% tax on resources
Australia 40% tax on resourcesStruggling to make sense of this. My fears of political risk in Indonesia have been supplanted by political risk in Australia.
https://www.businessweek.com/news/2010-05-02/australia-plans-to-impose-40-tax-on-resource-profits-update3-.html
Based on my reading of that article, the tax affects only resources extracted in Australia, regardless of the country of origin of the company extracting. So, it would affect the Paulsens mine, whether or not Intrepid was based in Australia or not, but it has no bearing on their Indonesia operations. Is that what others take from this?
Further, the article suggests that the tax is only going from 35% to 40%, and doesn't take effect until 2012. So, the damage to Intrepid is somewhat minimal, given the minimal resources coming from Paulsens. However, appears that we'll see a broad-based miner sell-off across the sector in the ASX on Monday.