Quote:
Originally Posted by fencer
1. Please read the exec summary of the royalty report before you comment
2. I think the Journal had commented on that the 1 billion cut from Encanna had already been planned. As the gas side in Alberta is already slowing. Personally you just have to go to Nisku to see all the gas rigs sitting in the yard
3. Corporations make donation for tax purposes...not because of goodwill
4. Alberta is booming...it isn't going to be the Corporation who pays for infrastructure.....royalty taxes will. Don't see any Corp in Fort Mac announcing that they are going to spend profit on a road.
5. Our royalty rules should be reviewed to reflect current conditions
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3. Yes that is true that one most donation there is a tax benefit - as there is for most individual that make donation to registered charities and societies. So if you make a donation you are only doing it for the tax purposes and not the goodwill? Personally if I make a donation the taxation part of it does not come into play. I happen to know that a lot of it is for goodwill on the part of the corporate world but do not for a moment deny that the tax write off does play a part.
4 Exactly - and those royalty taxes come from who????
5 Yes they should be - and it should reflect current costs and risks. It should also more accurately reflect the current state of affairs in the world or market price of both natural gas and oil.