Tuesday , November 24 2020

The auction on the stock exchange that helped Nutrien reduce the tax to pay for the sale of 24% of the SQM

Finally, US $ 1,002 million will be paid by Nutrien to the Internal Revenue Service (SII) for the sale of 24% of the SQM, a figure highlighted by the company as "highest in the Chilean tax administration's history".

The operation was monitored since April, when Canadian broke the first series of A shares on a stock exchange, a team of officials from the Large Taxpayers Directorate, the Office of Analysis of Elusion and experts from the special cases area. of the Subdirección de Fiscalización, in addition to legal subdirectorate professionals.

On the market, the sound of how the operation was to be taxed was no less, they pointed to the millionaire stall, and they had been since May 17, when Nutrien announced it would sell Tianqui's share in the SQM for US $ 4,066 million. And even after it was known that it would be through a stock exchange auction.
Market Maker On April 23, SQM hired Banchile as a market leader for Series A, a fact that could cause a historically illiquid stock

achieved a stock market presence and with that a decrease in its tax burden.

Although the contract was approved by the SQM Board in the February 19 meeting, a discussion took place, at which time the then directors Fernando Massú and Gerardo Jofré opposed signing the contract.

Article 107 of the Income Tax Act states that income that does not constitute income is considered to affect the tax, the greater the value obtained from the sale of shares issued by S.A. open with the stock market presence, made in the stock market.

Exactly this last term was the Nutrien complex: the stock market presence according to the Standard for General Character 327 of the former Superintendence of Securities and Insurance of 2011 means having daily transactions on the stock exchange for 1,000 UF or more for at least 45 of 180 trading days or the issuer has signed a contract with a market maker.

That is, if the action did not achieve significant transactions, the fact of having a market maker contract could obtain the tax advantage.

The same SII, however, noted in its statement Wednesday that "in the operation, the instrument known as the market broker was not used, as part of the shares met the general requirements required by the standard to qualify for the income qualification. 107 of the Income Tax Act ".

In this regard, he explained that these general requirements were confirmed by SII in the electronic billing systems and verified with information from CMF "confirming that the SQM-A stock obtained a stock-adjusted presence on 15 June".

This means that market operators who asked not to provide their names say that Series A papers reached the stock market's presence after the auction on April 20 on the Santiago Stock Exchange, where Nutrien discarded 1.5 million shares. of that series (equivalent to 1% of SQM) for which it raised $ 75 million.

Prior to the auction, SQM-A did not appear as an action with a listed presence in the Santiago Stock Exchange registry. But on June 15, it turned out for the first time by 25%, and today it has 54.44%.

This means that the collection, although historic, is less than would have been achieved if the auction were not completed in April, even though a package of shares was unable to shorten charges because they were acquired outside the stock exchange. so that it could not utilize 107 According to SII, they are 1,002.5 million. USD paid by Nutrien to the surpluses incurred in the operation affecting the first category of tax and final taxes.

Eventually, one knows the operation, the parties came to an intermediate point.

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