Comments on Munif Mohammed “The tax is a matter of ROCE”, 17/06/2010, http://www.businessspectator.com.au/bs.nsf/Article/RSPT-ROCE-effective-tax-rate-pd20100617-6FUUB?OpenDocument&src=sph
I am not sure this piece isn't more misleading, in the sense that the impact on the real return to the equity investors can be more pronounced after the RSPT and interest payments to lenders, because the RSPT is based on pre-interest payments earnings?
Besides, what the author shows is no more or less than the effects of the 6% RSPT free effect. The limit (of the trend shown in that graph) is clearly 40%, as the headline of the tax indicates.
One is left with what this piece really contributes to the debate.
It seems only more confusion being produced or generated by it.
A flawed tax is a flawed tax. There is no point to "make-up" it to look good.
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