Clive Palmer takes on the taxman over $90m bill
Wealthy prime ministerial aspirant Clive Palmer has gone to court to challenge a capital gains tax payment of up to $90 million on the sale of Western Australian iron ore mining rights to China in 2006, according to The Australian.
In documents lodged with the Federal Court last week, Palmer's private company, Mineralogy, is claiming that a $299m capital gain it originally declared on the sale of iron ore rights to the Chinese-controlled Citic Pacific was overstated and the company actually made a net capital loss.
The Australian Taxation Office has rejected his claim, which was made five years after the original deal. The dispute is one of the biggest between an individual and the ATO.
Business council says no to increasing carbon targets
The Business Council of Australia (BCA) has urged the federal government’s independent climate change adviser to resist a new push to increase Australia’s pledge to cut emissions, according to the Australian Financial Review.
The Climate Change Authority (CCA) is reviewing the 2020 target of reducing emissions by 5% as well as the long-term 2050 goal of reducing emissions by 80%.
While the authority is set to be abolished by an incoming Coalition government, its report is likely to lay down markers for Australia in international climate change negotiations.
Indonesian billionaire says foreign investment safe
Indonesian billionaire Edwin Soeryadjaya has declared foreigners need not be scared of investing in the country’s resources sector, despite a series of recent events highlighting an apparent rise in hostility towards outside interests, according to the Australian Financial Review.
Concerns over the risks associated with investing in Indonesia were raised last year when Australian-based companies Churchill Mining, White Energy and Intrepid Mines lost access to mineral deposits in the country worth billions of dollars.
These groups encountered problems either through falling out with local partners, which Indonesia law demands foreign mining companies must have, or falling foul of local authorities. But Soeryadjaya said there was no reason for offshore investors to give Indonesia a wide berth and he didn’t believe it was happening.
His advice for companies looking to avoid the same fate as Churchill, White and Intrepid was simple: “Make sure that you find the right partner and then you should also know what kind of legal structure you are getting into.”
