Substantially Undervalued, O&G Situation in play, page-204

Hey LOTM

Capital Gains will work like this on advice given so far to AXTi am led to believe

Argo should be able to apply the carried forward tax losses of $10,175,998 to reduce any capital gain derived on the sale of Pantheon shares.

On this basis, Argo should only pay corporate income tax to the extent that the capital gain on disposal exceeds the carried forward tax loss figure of $10,175,998. By way of an example, if Argo derived a capital gain of say $12 million (proceeds of $13,690,863 less cost base of 1,690,863) on disposing of all the Pantheon shares, then in essence it will derive a taxable income figure of $1,824,002 ($12 million less $10,175,998), and crystallise a tax liability of $547,201 ($1,824,002 x 30%).

Sounds ok to me