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Gold/Mining/Energy : Thermal Control Technologies Corp TCT (was Redux Energy)
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To: John Gorham who wrote (916)9/2/1999 2:21:00 PM
From: John Gorham  Read Replies (1) of 1208
 
My plea for factual information (that might give some justification for the hints and innuendos that have been published) having evoked no response, I continue in an optimistic mood, believing that the company has a great future.

However, to fill in these anxious moments of anticipation in a more positive way, can anyone (a chartered accountant maybe?) explain to me the reason why the financial statement for fiscal 1998 shows as a liability a provision for future income taxes of #343,000?

Your answer should include a reference to and reconciliation with the following sentence, which appears in note 13 to the audited statements:

"The corporation is not currently taxable as it has sufficient tax depreciation and other deductions to reduce current taxable income to nil"

That sounds to me as though no tax will be payable on the income for fiscal 1998. So why is a reserve needed? In particular, what future event might trigger a demand on the company to pay tax for the year 1998?

Yes, I did ask TCT and was told that the auditors had insisted on this provision. However, I have worried over the problem (purely as an interesting accounting oddity) for the past 13 months. Surely there is someone out there who can enlighten me.

John
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