Short Squeeze on Sale of Neuva Esperanza or 1st Gold pour, page-329

There is no Australian income against which to offset any KCN losses, so why worry about it?

KCN would not be paying any tax in Australia on the income it generates in Thailand, but you can ckeck that from past annual reports if you like. Pretty sure there would be an Oz/Thai tax agreement to ensure that KCN did not have to pay any Oz tax on its income derived in Thailand.

However should KCN ever be in a position to pay shareholders a dividend from income derived in Thailand then it can only provide franking credits to shareholder to the extent it has paid tax in Oz. I do not know if they have any franking credits outstanding since DOM was not a profitable operation when they sold it for $1? That means that shareholders will pay tax on the KCN dividends at their marginal tax rate and not have a tax rebate of KCN franking credits like other Oz based companies provide (eg banks and BHP).

I suggest you talk to you tax accountant to clarify matters.

GL

loki