Project Finance NewsWire

November 1998


Aggressive tax structure loses round two

A US appeals court held in mid-October that the Internal Revenue Service was right to deny the benefit from a series of complicated offshore maneuvers Colgate-Palmolive undertook in 1989 and 1991 ...


Contract buyouts made cheaper

The IRS told a utility in a private ruling recently that the utility can deduct part of the amount it paid a “qualifying facility” to buy back two power contracts and take title to the generating ...

A Utility Group Commences an Effort

A UTILITY GROUP COMMENCES AN EFFORT to fix foreign tax credit problems in the power industry, but the fix would only help affiliates of regulated electric and gas utilities.

Look for a Showdown Next Year

LOOK FOR A SHOWDOWN NEXT YEAR BETWEEN IOUs AND MUNICIPAL UTILITIES over whether munis can serve customers outside municipal boundaries and still retain the tax exemption on their debt.

The New Colombian Government

THE NEW COLOMBIAN GOVERNMENT proposed a series of tax reforms that are expected to take effect next January 1, assuming they are approved by Congress in December.

The Swedish Cross-Border Lease Market

THE SWEDISH CROSS-BORDER LEASE MARKET shut down after a decision this summer by the Regeringsrätten, or supreme court, that denied Swedish lessors depreciation on aircraft that they had leased cross border.

India Acknowledged

INDIA ACKNOWLEDGED that a most-favored-nation clause in its tax treaty with Holland has the effect of reducing withholding taxes on interest, rents and royalties paid to companies in Holland to 10%.

Hungarian Prime Minister

HUNGARIAN PRIME MINISTER Viktor Orban promised “radical” tax reform by 2000 at a breakfast in Washington in October.

Minor memos - November 1998

Gillette filed suit in federal court recently to fight the IRS over a claim that the company unwittingly triggered US “toll charges” twice on the same appreciation in value of its Mexican operatio...