Re: Official announcemnt on Sydney to Canberra yet???

["Andrew" <ahonan@zipworld.com.au>]

Maybe the issue is that the VFT want an accelerated tax depreciation which
is on a different scale to an accounting depreciation. this means that from
a tax point of view they can incur huge tax losses up front and carry those
tax losses forward while making a (relatively) smaller accounting loss
earlier and from an accounting point of view breaking even earlier.

Andrew


"Maurie Daly" <mauried@tpg.com.au> wrote in message
3a06d8a7.62896190@can-news.tpg.com.au">news:3a06d8a7.62896190@can-news.tpg.com.au...
> On Mon, 06 Nov 2000 10:14:12 GMT, "Dave Proctor"
> <daproc@spambait.ozemail.com.au> wrote:
>
> >"Maurie Daly" <mauried@tpg.com.au> wrote in message
> >3a062201.16131047@can-news.tpg.com.au">news:3a062201.16131047@can-news.tpg.com.au...
> >
> >> One of the issues that I have never completely understood in the
> >> Speedrail project is exactly what is it that the Federal Govt has to
> >> approve?
> >
> >They have to approve the tax concessions. In essence, they have to decide
> >between receiving no tax revenue if the project goes ahead (thereby
> >foregoing potential income) or receiving no tax revenue if it doesn't go
> >ahead (ummm, no project, no profits, no income) - I cannot see what their
> >problem is, since the former (income foregone) is only for a limited
period
> >(not sure how long).
> >
> >> The project is ostensibly a private project running thru NSW and the
> >> ACT,so surely the only Govt approval necessary is that of the NSW and
> >> ACT Govts which I understand has already been given.
> >> What are we waiting for ??
> >
> >See above.
> >
> >Dave
> >
> >
> This is the point I dont understand.
> A project with a very high capital cost like a VFT isnt going to make
> any profits for a long time , at least until the whole project is paid
> off,so there wont be any tax revenue anyway.
> If the Speedrail consortium had any kind of decent accounting then
> they would ensure that the project never made a profit , at least not
> in Australia.
>
> MD
>