resource tax

4:38 AM, 22 May 2010| More
Govt says Fortescue can pay less RSPT
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A quirk in its company structure will allow Fortescue Metals Group Ltd to reduce its resources super profits tax liability, The Australian reports.

The federal government told the miner it can drop the amount of tax payable by charging itself commercial rates when using its own railways in Western Australia, as the network is owned by a separate company under Fortescue.

The miner had to set up a subsidiary to own the Pilbara rail network as part of an agreement with the state government.

The reduced tax liability won't effect the company's recent decision to halt the $17.2 billion Soloman and Western Hub projects, but will give Fortescue an advantage over Rio Tinto Ltd and BHP Billiton Ltd which directly own their Pilbara rail networks, The Australian reports.


BCi will like i have been telling you all largely unaffected even if this tax came to pass in its worst form