Displaying items by tag: tax
Stora Enso's proposed fund distribution and its tax treatment
STORA ENSO OYJ STOCK EXCHANGE RELEASE 23 March 2010 at 7.00 GMT
Stora Enso's Board of Directors will, as announced on 4 February 2010, propose to the Annual General Meeting of the Company to be held on 31 March 2010 that EUR 0.20 per share be distributed to the shareholders from the parent company's invested unrestricted equity fund.
Stora Enso has received a legally final advance ruling from the Finnish tax authorities on how the proposed fund distribution of EUR 0.20 per share from the parent company's invested unrestricted equity fund will be treated for tax purposes. The advance ruling only concerns Stora Enso's tax withholding obligations as a distributor of funds. According to the ruling, EUR 0.035 per share will be treated taxwise as dividend and EUR 0.165 per share will be treated taxwise as repayment of invested equity at the point of payment. Stora Enso is liable to withhold due taxes on the part that will be treated as
dividend.
The fund distribution will be treated partly as dividend because part of the funds in the invested unrestricted equity fund originated from earlier years' retained earnings.
For further information, please contact:
Ulla Paajanen-Sainio, Head of Investor Relations, tel. +358 2046 21242
Successful In Keeping Pulp And Paper Products Off Brazil’s Tariff Retaliation
The government of Brazil this week released the final retaliation list on U.S. goods in its dispute over U.S. cotton subsidies, and the final list does not include pulp, paper or wood products.
The World Trade Organization (WTO) authorized Brazil to retaliate against the U.S. for non-compliance with its ruling in a dispute on cotton subsidies. A preliminary retaliation list issued by Brazil’s government last November included several pulp and paper products with a value of about $120 million, which if included on the final list could have been subject to 100 percent tariffs.
“We support free and fair trade and are especially pleased that pulp and paper products were removed from the final retaliation list by the Brazilian government,” said American Forest & Paper (AF&PA) President and CEO Donna Harman.
For More Information:
Carlton Carroll
(202) 463-2587
This email address is being protected from spambots. You need JavaScript enabled to view it.
Obama Joins in on the Black Liquor Two-Step
The Obama Administration announced today that it wants to close the non-existent "Son of Black Liquor" loophole to help "pay" for new healthcare legislation.
A few hours later, Senate Democrats won a key vote on jobs legislation that, in some versions, would be paid for partly with the "savings" from closing the same mythical loophole.
Meanwhile, the watchdogs of the news media acted more like lapdogs, taking Administration and Congressional statements at face value without bothering to check the facts. For example, a New York Times article on Obama's proposal states flatly, and falsely,: "Rescinding the 'black liquor' tax credit could generate as much as $24 billion in revenue over 10 years, helping to pay for a chunk of the health care legislation."
The Hill went further astray by saying the Obama proposal "rescinds the 'black liquor' tax break abused by paper companies that claim undeserved alternative fuel tax credits."
"Current law provides a tax credit for the production of cellulosic biofuels," notes the Obama Administration's summary of its new healthcare bill. "The credit was designed to promote the production and use of renewable fuels. Certain liquid byproducts derived from processing paper or pulp (known as 'black liquor' when derived from the kraft process) were not intended to be covered by this credit. The President's Proposal adopts the House bill's policy to clarify that they are not eligible for the tax credit."