Wednesday, December 15, 2004

Tax evasion scheme

Crucial to the success of the wind-power energy-laundering scam is the legislative scheming to make it financially attractive (which is to say, shift our money from public use into private profit). Here are excerpts from a prospectus found on a U.K. site promoting tax-evading investments.
Ventus is a new, specialist venture capital trust established to invest in a portfolio of companies that will develop, construct and operate small on-shore UK wind projects.

Significant Tax Benefits for Investors
Individual investors in Ventus are entitled to the following tax benefits:
  • up-front 40% income tax relief such that an investment of £10,000 will effectively cost an investor £6,000;
  • tax-free dividends; and
  • gains on disposal of Ordinary Shares free from capital gains tax.
Renewable Energy Economics
As part of its commitment to the Kyoto protocol and in accordance with the EU Renewables Directive, the UK has made a strong commitment to the development of renewable energy. The key policy mechanism by which the UK Government is encouraging growth in renewable energy is the Renewables Obligation, which was introduced in April 2002 as part of primary legislation and which is specified by such legislation to remain in place until 2027. The RO provides strong financial incentives for all licensed electricity suppliers to secure a specified and increasing portion of their electricity from eligible renewable sources such as wind power. Suppliers must either meet their targets or pay a "buyout price" in relation to any shortfalls. The renewables target for 2004/05 is 4.9% of total supply and grows steadily to 10.4% of total supply in 2010/11. According to the ROC register maintained by Ofgen, approximately 55% of the renewable obligation was met for the period from April 2003 to March 2004, during which time the renewables target was 4.3% of total supply. The Government has announced its intention to increase the renewables obligation target to 15.4% of total supply in 2015/16. In the opinion of the Directors, the RO helps to make onshore wind generation an attractive investment opportunity.