Malaysia's windfall tax -Will YTL Power actually pay anything?

As reported in THE EDGE ,5 June 2008:
Independent power producers (IPPs), which benefited significantly from highly subsidised fuel, have been dealt a major blow following the imposition of a 30% windfall tax on their return on assets (ROA) under the government’s restructured subsidy scheme.

Prime Minister Datuk Seri Abdullah Ahmad Badawi said yesterday the taxes would be implemented under the Windfall Profit Levy Act 1998 and would entail the IPPs contributing towards the higher cost of fuel such as gas for power generation. The tax will take effect from next month.

He said the 30% quantum would be imposed on the audited ROA threshold of 9%.
http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Article_56ce2976-cb73c03a-18992130-1d3b7060



However YTL Power International's ROA appears to have been consistently below the threshold:
Return on Average Assets
Quarterly
(Mar '08)- Annual-4.40%
(2007) Annual-5.49%
(TTM) -5.13%

http://finance.google.com/finance?q=KUL:YTLPOWR

It would appear that basing the windfall tax on the ROA gives YTL , and probably all other IPPs a convenient way out of paying the tax. IPPs are capital intensive, hence the base (ie the assets) will be high. But given leverage and steady, guaranteed revenue, the return on shareholders' equity can be relatively high: see my earlier post at http://sahathevan.blogspot.com/2007/06/how-god-decreed-that-ytl-power-have.html as well as
http://finance.google.com/finance?q=KUL:YTLPOWR

Comments

Post a Comment

Popular posts from this blog

Government funding for the College Of Law PLT where students are assessed on the quality of their reflection on their work experience , not the quality of their work experience

Image
 by Ganesh Sahathevan  The above has been extracted from the latest College Of Law Ltd's annual report.  The substantial government funding is provided via the Commonwealth's FEE HELP facility.  The Practical Legal Training (PLT)  which the College runs, and which is a prerequisite for admission to practise  in NSW, has the imprimatur  of the Chief Justice NSW, Tom Bathurst, in his capacity as Chairman of the the NSW Legal Profession Admission Board.  College Academic Director Lewis Patrick has said that in assessing the work experience component of the PLT  "  the College is not assessing the quality of (the student's) work experience, but rather the quality of (the student's)  reflections  on that experience . The College's PLT course is now mostly on-line, and there are problems with delivery and infrastructure. Its FEE HELP cashflow is being utilised to finance its expansion overseas. TO BE READ WITH  Fa...
Read more

Sydney is not Soweto, its Asian migrants are not coloureds, or persons of colour - South African Australian Judge Angus Morkel Stewart's decision in Faruqi v Hanson an insult to anyone who is not white

Image
 by Ganesh Sahathevan  In the recent Federal Court Australia decision in   Faruqi v Hanson   Mr Justice Angus Morkel Stewart (Stewart J)  found at [242]: I am comfortably satisfied that both groups of people in Australia that I have identified, being persons of colour who are migrants or of relatively recent migrant heritage and persons of colour who are Muslim, are reasonably likely, in all the circumstances, to have been offended (ie profoundly and seriously), insulted, humiliated and intimidated by Senator (Pauline ) Hanson’s tweet. The case concerned   a tweet  that One Nation leader Pauline Hanson directed at  Deputy Greens leader Senator  Mehreen Faruqi. Mehreen is Pakistani Muslim who continues to advocate for Pakistan as a senator of the Senate, Parliament Of Australia.  Senator Hanson wrote in her tweet "piss off back to Pakistan" after Senator Faruqi commented on the death of Queen Elizabeth II. While Stewart J's has hand...
Read more

Ex NSW LPAB Executive Officer Louise Pritchard ,subject of queries from The Australian, hired by Sydney University since early 2019 -NSW LPAB has never explained her departure, UYSD the reasons for her appointment

Image
  by Ganesh Sahathevan  In January 2019 The Australian reported:  The body overseen by Chief Justice Tom Bathurst responsible for deciding who can practise law in NSW relied on a wildly defamatory Malaysian blog depicting ABC journalists, former British prime minister Tony Blair, financier George Soros and others as part of a global conspiracy when deciding to deny a would-be solicitor a certificate to practise. Chief Justice Bathurst and Legal Practitioner Admission Board executive officer Louise Pritchard declined to answer The Australian’s questions about how the article came into the board’s hands and why its members felt the conspiracy-laden material could be relied upon as part of a decision to deny Sydney man Ganesh Sahathevan admission as a lawyer. Nor would either say which of the 10 members of the LPAB, three of whom are serving NSW Supreme Court judges, was on the deciding panel. Ms Pritchard has left her role at the LPAB since The Australian began making inqui...
Read more