Quote:
Originally Posted by the_only_turek_fan
http://business.financialpost.com/ne...llion-net-loss
CNRL posted a $405-million loss for the quarter, compared to $1 billion in earnings during the same period last year.
The company attributed the loss to a $579 million charge as a result of the recent hike in Alberta’s corporate tax rate, to 12 per cent from 10 per cent, introduced by the newly elected NDP in June.
If they paid $579M due to the 2% increase, and lost $405M overall, that means that they would have made something like $174M in profit.
Instead of using a potential $174M to pay dividends (which all help all of our RRSPs) or put that money towards future investment (which help all Albertans), the company above can do neither thanks Rachel.
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Again, if you don't understand it, don't quote it.
That isn't a charge to the government (i.e. no cash impact). In fact, if you read their financials (Q2 - 2015 note 7) you'll see that their H1 2015 deferred income tax expense is $60 MM lower than H1 2014 (209 vs 269) and current taxes paid are -3MM for Q2 (ie they got money back) and -108MM for H1.
Do they figure they will have to pay more in the future, of course, but it's being reported like they have to pay $579 right now, when in reality in North America they only had to pay $79mm (vs $225mm last year) in the quarter. The $579MM is an accounting gimmick (aren't they all) that they are using to score some political points and put pressure on the government.