Big Banc Split Corp T.BNK

why 2011?

[braincloud]

Why are they looking at 2011? If you look at the 2011 annual report there is a discussion about income taxes on page 22. As of Dec. 2011 $235.2 million remains to be recovered in the cost recovery pool representing BNK's cumulative capex of $577.4 million. Although BNK did report an operating profit that year the capex wasn't recovered. It's possible that this is the bone on contention. I'm no accountant , but to a layman, this could be a very simple problem to resolve. I mean BNK reports capex every QTR. The lower the capex the better no? Unless the ALBS are going to challenge every expense through an audit it seems to me this is a slam dunk. There is no motivation for BNK to cheat on what they spent? That year BNK posted a net income of $36 million. This could be just an over zealous finance minister trying to make a name for themselves.

[braincloud]

I forgot to mention that BNK would be required to pay a 50% profit tax AFTER BNK recovers their capex. Hence this tax recovery pool. So it may be a simple thing to figure out. The delay may come as a result of going through every charge to the pool. It strikes me that BNK wouldn't put anything into this pool that didn't belong. Less capex would make the operations look better no? It would

[braincloud]

It also strikes me that it would be a very unique circumstance to have any profit tax ever to be triggered. CAPEX is going to be there every year oil would have to have one heck of a move higher to have a profit in excess of capex. Badwi structured a good deal if my interpretation is correct.

[BrokerG]

Wittmann was correct in saying we have had issues previously with the government authorities. However, to "freeze" bank accounts is unprecedented and well beyond anything we have seen in the past. Why have we not heard from any gov't source as to their justification for this action? Now we get into a situation where the gov't must safe "face". In other words, they

[braincloud]

The justification is no different anyplace. Here in Canada if CRA says you owe money you have to come up with evidence to support why you don't. The ministry there is either right or wrong. The energy minister even says so. Why they took action to attempt to seize bank accounts is beyond me.

[braincloud]

How they even came up with a number like $53 million is beyond me. I mean I wouldn't think that the tax department sits in BNK's office counting up every receipt. They have over 530 million in cumulative capex. How they came up with that number beats the sheit out of me. Maybe,just maybe there could have been some Prepayment of some items I suppose, but beyond that we are probably taking

[dbeaude]

I think the article just posted from the Albanian news paper answers the question of why 2011. They are now auditing 2012 and 2013. Sounds like this thing may be just picking up momentum?