Originally Posted by
Harvey Specter
I know Roger(??) is concerned about the impuation credit position going forward so lets have a more detailed look.
Per the stats on p81, they have 0.1m of IC's so not enough to impute a dividend so they will have to pay more tax (before 31 March 2016) to be able to pay this dividend.
But lets look at their tax position. Current Tax is an asset of $16.2m which given their third installment wasn't due to after year end, means they have already prepaid, not just their final P3 payment, but $16m in excess of that, to be able to be used for 2016. And how much tax do they have to pay a year. Current tax expense per the notes is only $16m, so if 2016 is the same, then they have already prepaid their full 2016 tax liability, even though they need to make an additional payment to be able to impute the 2015 final dividend (that means to be able to impute the final 2015 dividend, they will be paying their 20167 tax liability early!!!). This is not sustainable unless they expect their tax liability to increase significantly going forward or they change their imputation ratio.