Terra Capital has won its battle with the Macau tax authorities. Following the sale of the AIA tower, the Fund sought to be allowed to deduct the accumulated, but not applied, depreciation from the selling price, thereby reducing the taxes due by about $1.9 million USD.
Terra Capital won the initial court case but the Macau tax authorities appealed. Counsel has now received a decision from the Court that as a result of the failure to timely file arguments, the appeal filed by the Tax Department against the Administrative Court award, is considered to have been “deserted”. This means the appeal by the Tax Department is no longer effective and has no further standing and the earlier decision in the Company’s favor is the final decision. The Company’s local counsel is now preparing a request for the return of the bond previously paid into the Court when the Company originally appealed the lower courts’ decisions. The bond has a value of approximately US $1.9 million and this decision will add over two cents per share to Terra’s NAV.
TCA : Terra Capital wins Macau tax battle