This is similar to the India Vodafone case, no? So depending on DRC regs, can challenge?
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Replying to @phdskat
looks like it. Q is how best to tax economic rents of nat resources? License or royalty better than CGT IMO
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Replying to @hselftax
or well-structured PSA as in oil industry (accepting those are not always perfect)
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@Bakhunin - yes - not new/free money but bringing revenues forward - eg IMF…pic.twitter.com/vhJguWLaSk
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Replying to @MForstater @hselftax and
well, resource rent tax is OK for extractives, what about e.g. Vodafone? Plus backstop.
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1] yes its a fiscal design option.but not such a good 1: as u say-common 2 structure around
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Replying to @MForstater @Bakhunin and
2] and economically a bad idea as it constrains productive restructuring
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Replying to @MForstater @hselftax and
but that's a different q to whether a govt deciding to impose CGT shld be thwarted [2of3]
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DRC doesn’t have CGT though https://www.kpmg.com/Africa/en/KPMG-in-Africa/Documents/2014%20Fiscal%20Guides/Fiscal%20Guide%20DRC.pdf …
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Replying to @MForstater @hselftax and
Wasn't talking specifically about DRC. But as it happens, KPMG at yr link thinks CG falls under CIT
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...but not on these kinds of transactions presumably (i know we're going round..)
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