Ann: Investor Update-STL.AX, page-52

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Kepo

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23/10/16

19:20

Post #: 20062280
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Originally posted by Zman28 ↑

@Kepo

In the preliminary report the Board had booked approx 25% of the deferred tax assets from the carry forward income tax losses and capital losses which were acquired as part of the reverse takeover of ICP back in August 2015 and which in fact are >$25mil worth of tax losses with a actual tax benefit of >$8mil.

This was a conservative view taken by the Board at the time of the preliminary report.

The auditors request this be backed out given the underlying loss and history of losses in ICP and suggested that in fact the booking of this deferred tax asset should be made at this year's half year accounts or in the FY17 accounts now that we are profitable and cashflow positive etc...

We agreed with the auditors and hence made that change and a note on the total tax deferred asset that is likely to be booked in the future is noted in Note 10C of the accounts. The tax deferred asset that can be booked can only be in relation to the income tax losses and not the capital losses carried forward by ICP.

So in short, some time before we pay tax, so the dividend to be paid in 2017 will have franking credits attached but future dividends once the franking credits available are used up will be unfranked.

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Appreciate the response zman.

Given that, as you said, you can only book the tax deferred asset relating to income tax losses, this figure I suspect is not $25m isnt it? More like $10-15m with actual tqx benefit of around $6m?

STL Price at posting: 3.4¢ Sentiment: None Disclosure: Not Held
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