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Gold/Mining/Energy : Yogen Fruz IT'S ALIVE, IT'S ALIVE -- Ignore unavailable to you. Want to Upgrade?

To: Mark Kubisz who wrote (1139)	2/7/1999 8:07:00 PM
From: Serge Collins	Read Replies (1) \| Respond to of 2453

Mark: A tax recovery is basically a refund of taxes paid in a prior period. Corporations are taxed based on an estimated tax expense and adjustments are made to balance this tax expense with the actual tax rate. Companies pay taxes on installment throughout the year and if a company paid more in taxes than warranted by their earnings or computed tax rate at year end, they can recover the part of the tax paid in excess of the actual rate as a recovery. Since income tax is deducted from earnings to arrive at net profit, a tax recovery is considered earnings. Therefore, any recovery would be added back to earnings to arrive at the actual year-end net earnings (adjusted for tax recovery).