Friday , January 27 2023

Auction on stock market that helped Nutrien reduce taxes to pay for sale of 24% of SKM


Finally, Nutrien will pay $ 1,002 million to the Internal Revenue Service (SII) for the sale of 24% of the SKM, which the entity has highlighted as the "highest in the history of the Chilean tax administration".

The operation has been monitored since April, when Kanadjanac stopped the first series of stock A on the stock exchange, by a team composed of officials from the Directorate for Large Taxpayers, the Office for the Analysis of the Eluzia and experts in the field of special cases. by-law, in addition to professionals from the Legal Subcommittee.

On the market, the noise of the way in which the operation is taxed is not less, they pointed to the figures of millionaires, and they were from May 17 when Nutrien announced that it would sell Tianqui its stake in SKM for US $ 4,066 million. And after it was known that it would be through the stock exchange auction.
Market Maker On April 23, SKM hired Banchila as a market maker for the A series, which is a fact that could cause historically ill-liquid stocks

there was a presence on the stock exchange, and consequently a reduction of the tax burden.

Although the deal was approved by the SKM Board of Directors at its February 19 session, a discussion was held in which the then Directors Fernando Mass and Gerardo Jofre opposed the signing of the contract.

Article 107 of the Law on Income Tax states that income that does not represent income is considered to affect taxes higher value received from the sale of shares issued by S.A. open with presence at the stock exchange.

This last concept was the Nutrien complex: presence on the stock exchange, according to the standard character of the 327 former securities and insurance supervisor in 2011, meant that it had daily transactions at the stock exchange for 1,000 UF or more for at least 45 out of 180 trading days, or that the issuer signed a market agreement.

That is, if the shop did not achieve significant transactions, the fact that there is a market market agreement can achieve a tax benefit.

However, the same SFI noted in its statement on Wednesday that "an instrument known as a market maker was not applied in the operation because a portion of the shares met the general requirements that the standard requires to qualify for the qualification of income. Income from Article 107 of the Income Tax Law" .

In this regard, he explained that these general requests were confirmed by the SII in electronic billing systems, and verified with the information provided by the CMF, "confirming that the SKM-A stock received a stock adjusted to inventories as of June 15th"

This implies indicating market operators who asked not to disclose their names, that A series documents reached the stock market after an auction on April 20 at the stock exchange in Santiago, in which Nutrien rejected 1.5 million shares. in relation to the series (equivalent to 1% SKM), for which it collected $ 75 million.

Prior to the above-mentioned auction, SKM-A did not appear as a stock market presence in the Santiago Stock Exchange. But on June 15 it first appeared with 25%, and today it has 54.44%.

This implies that the collection, although historically, is less than that which would have been realized if the auction was not conducted in April, although the package of shares failed to deduct taxes because it was acquired outside the stock exchange so that it could not benefit from 107 t According to the SII, US $ 1,002.5 million that Nutrien will pay corresponds to the profits generated by an operation that affects the first category tax and final taxes.

In the end, one expert on the operation says, the parties came to an indirect point.

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