To: From: Date: January 17, 2010 Subject: StockShares purchase of a Chilean company, performed by an Argentinean company.

Assumptions: a. The Panamanian Co.(PANA) provides charter/courier service to CCNI Chile (CCNI) b. Part of the payment for CCNIs charter service to PANA, is in "kind", by delivery of shares of CCNI. c. PANA allocates CCNIs shares to Kardamyla Argentinean company, (KARDA) as a payment for the service provided. Approx. cost: $ arg. 2 millions d. This allocation can be made as a loan, capital contribution or a donation. e. KARDA keeps CCNIs shares during a 3 or 4 year period, by that time, the stocks shares are sold at a profit.. Approx. Sell price: $ arg.3 millions, approx. profit: $ 1 million. Tax consequences of the operation
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PANA allocation of CCNIs shares, in KARDA: As mentioned in the assumptions this allocation cban be made in three different ways:
1.1.

A loan from PANA to KARDA: In this case, iIt is advisable in this casethat:

the signature of Aa loan agreement must be signed; the agreement should have an actual/a certain date (a signature certification performed by a notary is also enough to proveproof of the date of signature); the agreement should have an actual repayment date; the agreement should bear a market interest rate.

Tax issues/aspects:

deduction of interests paid and exchange rate can be deduced fromin KARDAs

income tax; interests earns will be taxed in PANAs income tax (according to Panamanian income tax laws); interest payment will be subject to an income tax a withholding tax at a rate of 35% (or 53,8462% with grossing up, in this sense, KARDA bears the tax cost). It is good to mention that, this withholding tax is considered as ancost/ expense for KARDA, therefore is deductible in the balance sheet for taxable purpose/ tax balances. In order to reduce this cost/expense, the loan could be: Granted by a bank, settled in a country that has taken bank supervision standards, established by Basileas Committee. In this case, the withholding tax rate iswill reduced to 15,05% or 17,7163% with grossing up.

Granted by a bank settled in a country that has signed double taxation treaties with Argentine, and which contemplates income tax reduction, over interest payments. Those countries are: Germany: 15% Australia: 12% Belgium: 12% Canada: 12,5% Denmark: 12% Spain: 12,5% Finland: 12% France: 20% Great Britain: 12% Italy: 20% Norway: 12% The Netherlands: 12% Switzerland: 12%

If its possible or neccesary to explore/study one of these options / If one of these options suits you, please let us know for further analyses on its applicability, requirements, and documentation to ogbtain/get. At this pointIn addition, weit should be analysed if PANA and KARDA are related partieslinked within the terms of articles 8 and 15 of the Argentinean Income Tax law: If they are linked/If this situation is observrelated partiesed, then the transaction will be subject to a transfer pricing testing. If the companies are not linked related within the terms of articles 8 and 15, (as it is my understanding), then, no further analyses is needed and exists more freedom to set the loans interest rate.

Argentinean Law establishes that companies are linked related parties if: they are subject directly or indirectly to the management or control of the same natural/physical or legal persons; and that thoese persons have decision power in order to/are empowered to guide or define, the activities of the mentioned/such companies, establishment and other types of entities, by either: - capital participation/their participations in the companies capital - their level of debts (acreencias) - their functional influences - all other influences, contractual or non. interest is subject to VAT Tax at a rate of 21% (KARDA should have to pay to AFIP (Argentinean IRS)/ enter / auto ingresar the fiscal debit, at the time of payment of interest, and then, booked/registered it as a fiscal credit). In the case that, the loan is granted

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by a bank settled in a country that has taken bank supervision standards, established by Basileas Committee, the VAT tax rate, diminish a 50% (10,5%) the loan agreement will also be subject to Stamp Tax / impuesto de sellos. This is because, independently on where the agreement is signed, has economical impacts/effects in Argentina. In the event that KARDA is domiciled situated in Buenos Aires City, the loan agreement will be subject to the Stamp Tax of such city, at a rate of 0,8% over the total amount of the loan, payable in full at the time of the signature of the agreement.
1.2.

A Capital contribution from PANA to KARDA: this alternativesituations has no tax consequences in Argentine A donation from PANA to KARDA: It is not recommended/advisable. Donations in Argentine, are subject to income tax, at a rate of 35%.

1.3.

2. Efectos durante la tenencia: a. Los resultados y los dividendos que eventualmente podra producir CCNI no estn gravados en Argentina, ya que solo estn gravados en el estado donde est domiciliada la empresa en donde de gener el beneficio o se distribuy el dividendo (art. 7 y 11 del Convenio de Doble Imposicin CDIcon Chile) b. La diferencia de cambio que se genere por la tenencia de las acciones, tampoco est gravada en KARDA, ya que: 2.1.1.1. Siendo el resultado de CCNI un resultado de fuente extranjera para KARDA, el mismo no est sujeto a diferencia de cambio hasta la disposicin de la acciones, entendiendose por tal el abandono de la generacin de rentas de fuente extranjera. 2.1.1.2. Tampoco estaran gravadas por aplicacin del Convenio de Doble Imposicin con Chile. En este punto, cabe aclarar que la Direccin Nacional de Impuestos ha opinado la no aplicabilidad del CDI con Austria en el caso de diferencias de cambio. Esta opinin todava est siendo revisada por el Tribunal Fiscal de la Nacin. La misma no es compartida con la doctrina en la materia. c. La inversin registrada en KARDA no est gravada en el impuesto a la ganancia mnima presunta. 3. Efecto de la venta de las acciones a efectuar por KARDA a. La venta se encontrara amparada por el Convenio de doble imposicin entre Argentina y Chile (Ley 23.228) b. En el marco de es convenio, la potestad tributaria la tiene Chile y el resultado por venta (en este supuesto la ganancia de $1 milln) no se encontrara gravado en Argentina. c. Si el comprador es: (i) un sujeto chileno: este debe retener a KARDA el impuesto a las ganancias. En caso de que sta alternativa sea aplicable, pedir opinin mas ampliada sobre este tema en particular.
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(ii) de otra nacionalidad, igualmente aplica el convenio de doble imposicin Arg Chile ya que no importa quin es el que compra dado que los extremos que exige el convenio estaran verificados (residente argentino obteniendo rentas de fuente chilena), no hace falta que sea una operacin entre residentes de los dos Estados. En este caso el comprador no actuara como agente de retencin ya que no es un sujeto inscripto en Chile por lo que la operacin no pagara impuesto a las ganancias en ningn estado. Cabe destacar en este punto que el fisco argentino en su dictmen 27/2003 opin lo contrario en el caso de una venta de acciones de una empresa radicada en Brasil (que tambin tiene un CDI con Argentina, en trminos similares al chileno), est gravada en Argentina ya que el resultado por venta es de fuente argentina. En este caso, en opinin de la doctrina especializada, considerar que el resultado no est gravado es muy defendible, pero probablemente controversial.

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