Take physic, pomp

Tax, streaming deals and the law of diminishing returns

On the back of the Silver Wheaton (SLW) tax spat with the Canadian tax people, we now have Primero (PPP) (P.to) in dispute with the Mexico tax people (and the stock plummeting as a result). So it goes.
But the most interesting thing about these developments, one at one end of the stream pipe (SLW the supplier) and one at the other (PPP to demander) is what it might mean for the streaming model itself. I’m certain that one of the things that sells a company into any streaming deal is arguments from CFOs about tax loopholes so if they’re now closing, or already closed, or even worse retroactively closed, it means the deals aren’t so great for potential customers of streaming companies in the future (and be clear, gubmint tax offices all over the world will be watching these cases). And that means the streaming companies will have to offer that much more in their deal packages. And that means streamers aren’t going to get a fat deal any longer. 
By the way, Adam Smith had this nailed down 240 years ago.

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