lynas - price target 12 months, page-4

Hi fuzzie,
One would imagine that LYC will declare most of its earning in Malaysia
where it is tax free.

I know that individuals get a tax offset for taxes paid overseas on foreign income. Perhaps someone with firsthand knowledge could comment on how company foreign earnings are treated.

It will be interesting to see if LYC declares and profit in Australia on
its ore produced in WA and shipped to Malaysia. I'd imagine if they
repatriated all of your estimated 25 cents per share earning before
tax that this would be reduced to 17.5 EPS after Australian tax so there is a compelling case to not repatriate profits; otherwise the 12 year Malaysian tax break would not make sense.

Usually in Australia emerging producers have enough tax credits due to
losses accrued during the exploration and development phases to exempt them from Aussie tax for at least 2 years.

Perhaps someone with firsthand experience could comment on Aussie tax treatment of profits made by Aussie companies overseas and repatriated to Australia.

Aussie companies such as News Ltd, Simms Metals and QBE make
a significant share oftheir profits overseas.

Cheers
Moorookamick
Sentiment: Hold.