viability of toro, page-8

you dont need to be a super producer.

thats the first misleading part to it.

My understanding from speaking to another company who is going thru the "what the huh to us?" said their read on it was that it applies to any producer,,and the tax is based pre EBIT,,,ie the 40% tax is slugged on the revenue, before the cost of finance.

Now, debt finance is a large part of any project, so its quite possible that a project, with EBIT is making a cash flow loss, yet,,,still then need to pay tax!!

Knife thru the heart.

Now i could be wrong,,if the company was talking to have it wrong, and would be interested if anyone else has heard same, to verify.