“Withholding or deduction on account of tax from payments made under private finance initiatives (PFI) contracts may damage cash flows that underpin projects. Similarly, unexpected tax liabilities on amounts received by the special projects vehicle (SPV) can produce a funding shortfall.”
The reasons why this should be so (including the possible impact of the Inland Revenue construction industry scheme) are carefully explained in
The same authors continue their good work in
“Withholding or deduction on account of tax from payments made under private finance initiatives (PFI) contracts may damage cash flows that underpin projects. Similarly, unexpected tax liabilities on amounts received by the special projects vehicle (SPV) can produce a funding shortfall.”
The reasons why this should be so (including the possible impact of the Inland Revenue construction industry scheme) are carefully explained in A taxing issue of cash flows, Estates Gazette 26 August 2000, p82, contributed by Simon Meredith and Charles Elphicke, of CMS Cameron McKenna.
The same authors continue their good work in The VAT of the land, Estates Gazette 16 September 2000, p154, which looks at three VAT issues that can make all the difference between a PFI transaction being “affordable” or not.
