Short Squeeze on Sale of Neuva Esperanza or 1st Gold pour, page-333

"Offsetting Australian tax loss with profit means more cash for dividends or reinvest."

If the Thai company tax rate is 30%, same as the Oz rate, then there is no tax to be paid in Oz to offset against past KCN accumulated losses, and so there would therefore not be any available additional cash for dividends and reinvestment. However, if Akara is given a tax holiday and has to pay Oz tax on dividends it recieves, then perhaps there may be scope for KCN to offset some of its past losses.

There is also the issue of the Thai withholding tax on the payment of dividends by Akara to KCN, which simply gets lost to KCN and its shareholders - I think this tax may be around 10%. Hence only part of the dividends paid by Akara would be available to be paid to Oz shareholders.

loki