Rebate coming?14 Jun 2018 00:22
An amount equal to US$10,725,000 (being 15 per cent. of the anticipated maximum consideration of US$71,500,000) has been withheld in respect of potential tax liabilities in relation to the Company's US operations, including the gain made on the disposal of the Asset. A Tax Withholding Certificate Application, which provides a detailed estimated assessment of the Company's actual tax liability, has been lodged by Empyrean and its US taxation advisors before Closing, in accordance with Treasury Regulation Section 1.1445-1(c)(2)(i)(B), and the amount included on the Withholding Certificate Application will, once accepted by the IRS (who are expected to respond within 90 days), be paid to the IRS to meet the tax liability and the balance of the amount held in escrow may be returned to the Company . The current total of potential estimated tax liability is US$3,500,000. The US$3,500,000 is split approximately US$2,000,000 for the Purchase Price liability and US$750,000 for each of the First Contingency Payment and the Second Contingency Payment, such that if the contingency payments are not made then the Company may have a reduced tax obligation.
No contingency payments received