Ann: Master Project Agreement Commercial Terms Disclosed, page-100

People concerned with the equity interests in the special purpose vehicle would be well advised to consider the implications of one particular sentence:

"this funding structure reduces the overall complexity and financial risk associated with international taxation and R&D funding elements."

International taxation could well be a reference to the Controlled Foreign Company (CFC) rules, as well as the royalty articles in the Australia / India Double Tax Agreement.

These provisions are some of the most perversely mind bending provisions in the tax act, and fraught with danger. Without careful navigation overseas earnings can well be subject to taxation in both countries.

A 49% ownership rather than a 51% ownership may well be a device to avoid such a double tax disaster.

It would seem that these implications have been well researched and considered through several intensive reviews.

Without understanding that background, it may be somewhat simplistic to criticize the ownership structure based merely on assumptions about how decisions will be made and profits returned. The profit returned to Australian shareholders is paramount, and to achieve that a through analysis of the international tax regimes is required. I expect that few here have that competency.