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Technology Stocks : Pacific Century CyberWorks (PCW, PCWKF) -- Ignore unavailable to you. Want to Upgrade?

To: ms.smartest.person who wrote (4111)	12/11/2000 1:40:22 AM
From: ms.smartest.person	Read Replies (1) \| Respond to of 4541

Telstra denies avoiding taxes AAP -- Telstra Corp Ltd said it would establish holding companies for its multi-billion dollar Asian joint ventures in Bermuda, but denied the move was an attempt to avoid paying taxes in Australia. A Telstra spokesman said its joint venture mobiles and infrastructure companies with Pacific Century Cyberworks Ltd (PCCW) would be registered in the self-governing British colony. Under the move, up to $5 billion of Telstra's offshore assets which make up the PCCW alliance are expected to be transferred to the holding companies in Bermuda. Bermuda is an internationally-renowned tax haven, particularly for companies which have shareholders and generate profits from more than one country. Holding companies are treated as tax neutral. The Telstra spokesman said none of the company's Australian assets were being moved offshore and the PCCW joint ventures would be subject to normal taxation rules for Australian-controlled foreign companies. "Any assets which Telstra has in the joint venture companies will be subject to the normal capital gains provision of the Australian tax act, and any profits made by that company will be subjected to the tax rules of Australian-controlled foreign companies," the spokesman said. "It is not correct to suggest Telstra assets are being shifted offshore because what we are talking about are assets which are part of a JV which are already located throughout Asia." He said the Bermuda move was driven by the need to have a "mutually acceptable" location for Telstra, Hong Kong-based PCCW and any future partners ahead of the joint venture companies being listed on the stock exchange. "Being located in Bermuda will assist future listings on a number of international stock exchanges and it is a common method of achieving listings, particularly with the foreign operations of US companies," he said. "Bermuda has an internationally recognised legal system being British, a favourable regulatory environment. "It has a jurisdiction which facilitates debt and equity raisings because it is tax neutral." news.ninemsn.com.au