The_Open_Door_deel1

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TABLE 14
FINANCIAL COSTS OF CERTAIN PRIVILEGES
ACCORDED TO LAMCO AND LIBETH 1963 - 1977
(in U.S. dollars)
Depletion Allowance (Libeth) $ 28,785,000
Interest Payments (Libeth) 38,974,000
Interest Payments (LAMCO) 119,029,000
Debt Amortisation (Libeth) 30,444,000
(60? of $ 50,740,000)
Debt Amortisation (LAMCO) 98,082,600
(60? of $ 163,471,000)
Guarantee Swedish LAMCO Syndicate 2,950,000
Special Dividend Paid to L.1.0. 17,649,000
(1974 - 1977)
TOTAL 335,913,600
- Loss of Potential Revenue: 167,956,800
(50? of $ 335,913,600)
Sources:
- Annexes 15 and 16
out of every dollar of sales, against the Bethlehem Steel
Corporation 21,5 cents (net profits) whereas every dollar of
sales of LAMCO added only 7.7 cents to the National Treasury
while the private investors (L.1.0.) received 16.8 cents, (see
Annex 15 and 16).
The Treasury's income from the concession would have been nearly
triple the amount it actually received if the companies had not
enjoyed privileges such as a depletion allowance (Libeth),
interest payments and debt amortization deductable from taxable
income (Libeth) or from gross profits (LAMCO), exemption from
certain taxes and duties (notably customs duties and excise
taxes), and the payment of a Special Dividend to L.1.0. by LAMCO.
An estimated amount of between $ 160,000,000.00 and
$ 175,000,000.00 was thus "given away" to the (mainly foreign)
investors in a period of 15 years, i.e. about $ 11,000,000.00
per year (see Table 14)- Not included in Table 14 are the
exempted customs duties and excise taxes. Little is known of the
total loss of revenue caused by these tax-free privileges but the
exempted excise tax on petroleum products alone in only one year,