Steel&Tube Holdings is the latest company to advise the market of how it expects tax changes to hit its bottom line.In Steel&Tube's case the impact is expected to be a rise in deferred tax liability as at June 30 of about $4 million, along with a
Steel&Tube Holdings is the latest company to advise the market of how it expects tax changes to hit its bottom line.
In Steel&Tube's case the impact is expected to be a rise in deferred tax liability as at June 30 of about $4 million, along with a reduction of the same size in reported net profit after tax.
The deferred tax increase was a one-off non cash adjustment which had no effect on underlying profitability, dividends or cash flows for the year to June, Steel&Tube said today.
The advice takes into account the Government's budget announcement of a reduction in the corporate tax rate from 30 percent to 28 percent, and reduction to zero percent of the tax depreciation rate on buildings with a life of 50 years or more, with effect from July 2011.
