Tax Cost of Investment Projects: the case of ICMS credits

This article discusses the impact on the profitability of firms under Complementary Law 102/2000 (which abrogated the Law 89/96 - Kandir Law) allowing the appropriation of ICMS credits, due to investment in fixed assets goods, at a ratio of 1/48 per month. The paper seeks to demonstrate how this new system - which resulted in the transformation of the ICMS as a value added tax (VAT) consumption-type to an income-type - leads to a loss of approximately 30% of the value of credits to be recovered and the effect it generates on the cost of investment and the profits for small, medium and large firms. From the methodological point of view, it is a descriptive and quantitative research, which proceeded in three stages. Initially, we have obtained estimated value of net sales and volume of investments, based on report Painel de Competitividade prepared by the Federacao das Indtustrias do Estado de Sao Paulo (Fiesp/Serasa). Based on this information, it was possible to obtain estimates of the factors of generation of debits and credits for ICMS, using the model Credit Control of Fixed Assets (CIAP). Finally, we have calculated three indicators: (i) present value of debt recovery/value of credits, (ii) present value of debt recovery / investment value, (iii) present value of debt recovery / sales profitability. We have conclude that the system introduced by Complementary Law 102/2000 implicates great opportunity cost for firms and that legislation should be reviewed from this perspective, aiming to ensure lower costs associated with investment projects.

Measuring Hydraulic Conductivity to Wilting Point Using Polymer Tensiometers in an Evaporation Experiment

The polymer tensiometer is a novel instrument to measure soil water pressure heads from saturation to permanent wilting conditions. We used tensiometers of this type in an experiment to determine the hydraulic properties of evaporating soil samples in the laboratory. Relative errors in the hydraulic conductivity function in the wet part were high due to the relatively low accuracy of the pressure transducers, resulting in a large uncertainty in the hydraulic gradient and therefore in the calculated hydraulic conductivity. In the dry part, the error related to this accuracy was on the same order of magnitude as the error related to balance accuracy. Therefore, the method can be assumed adequate for measuring soil hydraulic properties except under very wet conditions. In our experiments, relative error and bias increased significantly at pressure heads less negative than -1 m.

Column connection detail, Kangaroo Point House

Hand-made spotted gum column on edge of outdoor room.

West elevation, Cleveland Point House, Cleveland

Hand-drawn elevation.

Cottage, Cleveland Point House, Cleveland

Beach elevation of renovated existing cottage.

Lattice to boat house, Cleveland Point House, Cleveland

Lattice behind pull-down blind to boat house.

Beachfront elevation, Cleveland Point House, Cleveland

Timber framing to new bath house (centre), with existing buildings to either side.

Bath house, Cleveland Point House, Cleveland

New bath house under construction (centre), with existing buildings to either side.

Bath house, Cleveland Point House, Cleveland

Bath house under construction, as seen looking towards water from deck area.

Bath house, Cleveland Point House, Cleveland

As seen looking towards water from deck area.

Beachfront elevation, Cleveland Point House, Cleveland

New bath house (centre), with existing buildings to either side.

Boat house, Cleveland Point House, Cleveland

Existing boat house undergoing renovations.

Bath house hip rafters, Cleveland Point House, Cleveland

Timber framing to new bath house.

Beachfront elevation, Cleveland Point House, Cleveland

Timber framing to new bath house (centre), with existing buildings to either side.

Bath house section, Cleveland Point House, Cleveland

Section taken through new bath house.