Oh common! The tax comes in after a profit! Geez, what does it take? Anyone would think that HC members must be totally incapable of doing some simple math - the only thing that is being questioned is how much profit is taken away from a business? No profit, no tax!
If you return over 6% net profit, then your tax rate is going to be an extra 40% on the NET PROFIT. I believe the 6% number is going to be changed - its just too small to warrant the risk in investment. Also, I believe the 40% return on failed projects should be removed and the 40% tax amount altered or the net profit (return) threshold raised further.
The tax makes sense, but how the government has introduced it is lamentable and actual implementation will need a lot of tweaking, but the excrement being thrown about is not helping.
As for OD not being profitable, you can't pay a 40% tax on profit without a profit, so the whole pretense of the title is wrong.
BHP Price at posting:
$39.07 Sentiment: Hold Disclosure: Not Held
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