Loan servicer RHG has lifted its earnings guidance for the 2009/10 financial year by more than $20 million after a favourable tax outcome.The company reported a contingent income tax asset of $21.2 million in its accounts last year. Yesterday the company reported that it had received from the Australian Taxation Office an amount of $21.2 million "in regards to this contingent income tax asset" and would bring it to account in the 2009/10 financial year.Previously the company had estimated that 2009/10 net profit would be between $65 and $75 million. Now the company expects to report between $86 and $96 million.RHG (formerly Rams Home Loans) has a mortgage book in runoff. Intelligent Investor analyst Greg Hoffman has estimated that the company will have cash of about $1 a share when all the loans are paid out. Hoffman said the earnings upgrade would add six cents a share to the company's cash holdings.Hoffman said he did not expect the news to have much impact on RHG's share price. The stock closed at 67 cents a share yesterday - a 30 per cent discount to its cash backing.Hoffman said the discount was a reflection of the uncertainty about what the company will do with its cash. While some shareholders have argued that the company should return cash to investors and wind itself up, the board has not ruled out investing in a new business.The company has a non-compete agreement with Westpac, which bought the Rams franchise network, that will keep it out of the mortgage market until the end of 2010.