Thursday , October 21 2021

The stock market auction that helped Nutrien cut taxes to pay for SQM's 24% sale



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Finally, US $ 1,002 million will be paid by Nutrien to the Federal Revenue Service (SII) for the sale of 24% of SQM, a number that was singled out by the entity as the "highest in the history of the Chilean Tax Administration."

The operation has been monitored since April when the Canadian broke the first series of shares of the A series on the stock exchange by a team made up of officers from the Large Taxpayers' Office, the Elusion Analysis Office, and special case specialists . Subdirección de Fiscalización, as well as professionals from the Legal Subdirectorate.

In the market, rumors of how the operation would be taxed were not lower, they pointed to millionaire numbers, and were since May 17, when Nutrien announced that it would sell Tianqui its stake in SQM for $ 4,066 million. And also after it was known that it would be through a stock exchange auction.
Market Maker On April 23, SQM hired Banchile as a market maker for the A series, which could cause a historically illiquid stock.

has gained a presence in the stock market and, with this, a reduction in its tax burden.

Although the contract was approved by the SQM board at the February 19 session, there was a discussion in which the then directors Fernando Massú and Gerardo Jofré opposed the signing of the agreement.

Article 107 of the Income Tax Law establishes that income that does not constitute income is considered as affecting taxes, the higher amount obtained in the sale of shares issued by the open SA with a presence in the stock market, made in the stock market .

Precisely, this last concept was the complex of Nutrien: the presence in the stock market, according to the General Character Pattern 327 of the former Superintendence of Insurance and Social Security of 2011, means to have daily transactions in the stock exchange for 1,000 UF or more for no minimum 45 out of 180 trading days, or that the issuer has signed a contract with a market maker.

That is, if the lawsuit did not reach significant transactions, the fact of having a market maker agreement could achieve the tax benefit.

However, the SII noted in its statement on Wednesday that "in the operation the instrument known as market maker was not applied, since part of the shares met the general requirements required by the standard to qualify for income qualification. income of article 107 of the Income Tax Law ".

In this regard, he explained that these general requirements were confirmed by the SII in the electronic invoice systems, and verified with the information provided by the CMF, "confirming that the shares of SQM-A obtained a stock-adjusted presence as of June 15 "

This implies indicating traders who asked not to reveal their names, that the A-series stocks reached the stock market after the auction held on April 20 at the Santiago Stock Exchange, in which Nutrien discarded 1.5 million of actions. of the series in question (equivalent to 1% of SQM), for which it raised US $ 75 million.

Prior to the aforementioned auction, SQM-A did not appear as a stock with a stock market presence in the Santiago stock exchange registry. But on June 15 appeared for the first time with 25% and today has 54.44%.

This implies that the collection, although historical, is lower than what would have been obtained if the auction were not held in April, although a package of shares was not able to discount taxes because it was acquired off the stock exchange. According to SII, the $ 1,002.5 million that Nutrien will pay will correspond to the profits from the operation that affect the first category tax and the final taxes.

In the end, says one connoisseur of the operation, the parties have reached an intermediate point.

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