Replies to post #111586 on Aurora Acquisition Corp (AURC)

[eik]

First, everybody in US should get familiar with Value Added Tax (VAT), because this is where we are heading here, especially if Obama administration still has law generating power after November elections. VAT is used all over the World, and average Russian rate is 18% (for some products can reach 24%):
http://en.wikipedia.org/wiki/Value_added_tax
http://www.worldwide-tax.com/russia/rus_other.asp

Not sure about proposed Aurus-Mayskaya transaction details (and even whether this merger is for real), but, roughly speaking, when Mayskaya recently paid $5+ mln for it's equipment ( http://investorshub.advfn.com/boards/read_msg.aspx?message_id=52515408 ) this price included 18% VAT (Russian "NDS"). Now selling company for $3 mln total (including all the equipment) they claim that no additional value has been added to the product, meaning VAT is "negative", meaning the amount they paid to the supplier will be refunded back by the Government that collected this tax.