Kynes said:
I don't know how is it in other countries, but in Spain, when a company has profits, has to pay a corporate tax of 25-30%. If you have losses, you obtain a tax asset of a 25% of the losses, so you can compensate with future profits, but you can only use it during a number of years. If you don't have profits during several years, you lose that tax asset. I believe this is what has happened here. If you can't use that asset, it's lost money that you have to put in the balance, as it's money that you won't recover compensating against future taxes due to profits. |
you got it champ
no one is arguing that this isn't lost money because it is, a loss is a loss, but it's not as bad here because the loss isn't because of their business it's because of writing off the tax assets as a loss. They already recorded the 2.96 billion in losses which is directly result of diminishing return on their business, that added to the tax asset they had to write off and you got the total 6.4 billion as seen in the other thread, it's not as bad as if the 6.4 billion was directly resulted to the company like people here would want you to believe.
