The difference between a dividend and this "cash back to shareholders" is that a "dividend" is a distribution of a part of the money coming from the net profits made by a company. And that is taxable.
But when a company doesn't make profits....( and POZN will NOT make profits this year ), the money they pay back is directly from capital they have. So the shareholder will get back some of the money he gave the company in the past by buying its shares (IPO). And therefore no need to pay tax.
THIS is the reason that POZN spreaded the $15million from Sanofi over 15months. To make sure that year 2013 wouldn't have any profits.
For PLachetka and RA capital very imortant that it is not a regular dividend because now they save themselves about $1.8 million (together they have more then 4million shares)
Sometimes a company who makes net profits, also gives "cash back to shareholders" and this also should be seen as a deduction of capital.... but it is hard to prove that 100% of that money comes from the capital and in such cases you still need to pay tax!!!! (on the part that can not be proven to come from the "companies capital"
In that case it is a grey area and one country can see it more this way and another country can see it another way.
Anyway, seems we should not worry about tax and we all should thank the CFO of POZN. Next year will be different because POZN sure will have a net profit. In fact, over the last three years, POZN always had good net profits. Only this year not. Now you know the reason why we do not have net profits in year 2013
"But when a company doesn't make profits....( and POZN will NOT make profits this year ), the money they pay back is directly from capital they have. So the shareholder will get back some of the money he gave the company in the past by buying its shares (IPO). And therefore no need to pay tax."
problem for you to consider along your thinking, You didn't purchase at the IPO, you purchased in the open market after the IPO. 2 different things, the money you spent buying didn't go to the company, it went to a selling shareholder.
hahaha... I knew someone would say that. Think again, ... and a bit longer, ok?
""it went to a selling shareholder.""... WHO BOUGHT it from another selling shareholder and so on but your share was ever BOUGHT during the IPO. Do you understand.
It doesn't matter if you bought the shares from the beginning or yesterday.... the rights and the obligations since the IPO go with the shares,
The only issue, and that you should have mentioned, POZN did make profits in some years and in other years it made losses.... so a governemt could say... those are profits from previous years.....But lucky for us, as for today, the total losses (since IPO) are much bigger then the total gains. And POZN never payed a "normal" dividend before. So I think any government has to accept that this is a reduction in capital.
Anyway, some guys on this board already said that in the uSa there will be no taxes on this kind of cash distribution and in most European countries, as I ask around, it also would not happen. Especially when the USA did not hold in taxes before the money comes to Europe.
Anyway, we are talking about peanuts... the HUGE thing to come are the PA sales.... that will make us all rich or not. Cross your fingers and be happy with this new year's present from Plachetka.