Project Finance NewsWire

January 1999

IN THIS ISSUE

Ideas for Responding to Global Climate Change

The “Framework Convention on Climate Change,” adopted at the United Nations Earth Summit in 1992, envisions longterm solutions to a long-term problem. With the adoption of the “Kyoto Protocol” to the convention


IN OTHER NEWS

THE IRS CRACKED DOWN ON “FAST-PAY STOCK.

This is stock that pays such large dividends that the dividends represent not only a return on the shareholder’s investment, but also at least partly a return of that investment...

SECTION 861 STRUCTURES COME UNDER FIRE

Lee Sheppard urged the government, in an article in late December in Tax Notes magazine, to attack so-called 861 structures that many US companies are using to burn off “overall foreign losses...

Solid Waste

“SOLID WASTE” may be redefined for tax purposes.

India

INDIA is expected to levy a new tax on electricity consumption, with 66% of the money to go to local ...

The Romanian Parliament

THE ROMANIAN PARLIAMENT voted in late November for a 10-year tax holiday on income from new investments exceeding the equivalent of US$50 million.

Inland Revenue

INLAND REVENUE issued interim guidance in December for companies with global trading desks in London on how much income from trades should be allocated to the United Kingdom.

Water Utilities Charge

WATER UTILITIES CHARGE that the US government reneged on a deal involving tax treatment of water interties.

Bell Atlantic

BELL ATLANTIC lost a dispute in federal district court last month over investment tax credits.

Texas

TEXAS confirmed that manufacturing companies in the state do not have to pay sales taxes on natural gas they purchase to generate their own electricity.

MINOR MEMOS - January 1999

The Joint Tax Committee in Congress reported in December that 47.8 million Americans will escape income tax liability in 1998 due to deductions and credits. Most are in lower income brackets...