Let’s look more at the $1 billion tax loss that is involved in the Port Hawkesbury Paper deal:
You may have heard the $1 billion figure thrown around in regards to the sale of NewPage Port Hawkesbury. Exactly what is the $1 billion in tax credits? Where did it come from? And how is it being transferred?
...Corporations aren’t taxed on their profits they may post during a year. They are taxed on their cumulative profit...NewPage Port Hawkesbury has accrued roughly $1 billion in tax losses that could be used to offset future profits...A mutually beneficial agreement with Nova Scotia Power could be the key to Pacific West Commercial Corp. successfully restarting and operating the mill.
Without a lower power rate, Pacific West Commercial Corp. would be no more likely to succeed than the mill’s recent two owners, NewPage and Stora Enso.
...What happens now that Canada Revenue Agency has denied the advanced tax ruling proposal...The Province of Nova Scotia has stepped in and offered to make more of its $124.5 million funding package for the mill forgivable.
ForestTalk.com.
