The Real Truth About Ebix's Tax Situation
The Company’s consolidated effective tax rate is reduced because of the blend of reduced tax rates in foreign
jurisdictions where a significant portion of our income resides. Furthermore, the Company’s world-wide product
development operations and intellectual property ownership has been centralized into our India and Singapore
subsidiaries, respectively. Our operations in India benefit from a tax holiday which will continue thru 2015; as such
local India taxable income, other than passive interest and rental income, is not taxed. After the tax holiday expires
taxable income generated by our India operations will be taxed at 50% of the normal 33.99% corporate tax rate for a
period of five years. This tax holiday had the effect of reducing tax expense by $11.5 million.
The Above is from the company's 10k you see if make believe research companies read these things instead of writing anonymous blogs our time would be alot less wasted.
Basically until 2015 they have a tax holiday on foreign income and then they will pay a more normal rate on it. Also they have Tax loss carry overs which will last another year or so.
Furthermore the other statements said blog made were about situations at least 4 to 5 years ago.
If you read the blog on seeking Alpha it was nothing more than a short sellers desperation post disguised as research.
Disclosure Author is Long Ebix