Mart Resources Inc MAUXF

RE:Question about tax benefit contributions

[wallywill]

Reference to the tax benefit contibutions.
Fernando what you are refering to is the pioneer status that was granted to Mart back in 2011. This gave the company a "tax holiday" on the petroleum profits which expires in 2014. (this is separate from income taxes which Mart still pays).

 I suspect that this was brought up on the board to try and create doubt about future costs to Mart and the company's future viability. Meanwhile Mart will also be going in and out of cost recovery benefits as it has to spend capital to drill new wells, share of the pipeline costs, new central production facility etc which will change the amount of taxes paid.

As you have posted, in 2010 Mart recorded 10.6 million in tax benefit contributions for the year.
In 2013 for 6 months up to June, the company recieved 1 million.
The taxes in Nigeria are very complex but it is obvious that the more that a company makes the more income taxes they will be subject to.

One thing is for certain and it is Mart will pay taxes but the only thing that really matters is the bottom line or earnings per share.

Hope this helps
Wallywill