The public interest business protection tax is intended to deter owners of energy supply businesses from removing assets upon which the business’s survival relies. An example would be if an energy supply business was to realise commodity hedging gains and distribute those gains to its investors, rather than using them to offset the losses of the business itself, as a result of which the energy supply business fails. The tax seeks to prevent such actions by subjecting the investors and other related parties to tax at 75% of the value of the assets taken out of the energy businesses.
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The public interest business protection tax is intended to deter owners of energy supply businesses from removing assets upon which the business’s survival relies. An example would be if an energy supply business was to realise commodity hedging gains and distribute those gains to its investors, rather than using them to offset the losses of the business itself, as a result of which the energy supply business fails. The tax seeks to prevent such actions by subjecting the investors and other related parties to tax at 75% of the value of the assets taken out of the energy businesses.
If you are not a subscriber, subscribe now to read this content.
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