Tax issues impacting acquisitions in the Australian oil and gas industry

2011 ◽  
Vol 51 (2) ◽  
pp. 669
Author(s):  
Chad Dixon
Keyword(s):  
Income Tax ◽  
Oil And Gas ◽  
Investment Decision ◽  
Oil And Gas Industry ◽  
Capital Gains ◽  
Capital Gains Tax ◽  
Gas Industry ◽  
Resource Rent ◽  
Goods And Services ◽  
Petroleum Resource

Understanding the tax implications and structuring options of a transaction is critical when assessing and comparing new opportunities. When undertaking any transaction involving Australian oil and gas assets, the applicable taxation regime should be carefully explored and understood. From an Australian perspective, taxes such as corporate income tax, petroleum resource rent tax, capital gains tax, and goods and services tax have significant potential to influence the investment decision. This presentation will focus on the tax implications applicable to the acquisition and disposal of Australian oil and gas assets, providing valuable insights for both Australian companies and inbound investors.

Contemporary fiscal issues impacting M&A in the oil and gas sector

2012 ◽  
Vol 52 (1) ◽  
pp. 149
Author(s):  
Kenneth Wee
Keyword(s):  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Regular Feature ◽  
Gas Industry ◽  
Resource Rent ◽  
Petroleum Resource ◽  
Recent Developments ◽  
Australian Economy ◽  
To Come ◽  
Oil And Gas Sector

Ongoing growth in deal activity in the oil and gas industry is one of the critical forces underpinning the sustained robustness of the Australian economy. Australian oil and gas assets continue to attract significant international interest and are actively pursued by global and domestic investors alike. On the supply side, exploration players are seeking the necessary funding and technical support to commercialise prospective oil and gas discoveries, while on the demand side, major established oil and gas companies are seeking to acquire viable targets as a means of rapidly replenishing their reserves. Consequently, merger and acquisition (M&A) deals and asset trades have become a regular feature of the corporate oil and gas scene in Australia. In time to come, a wave of industry consolidation is likely to emerge. This paper discusses key fiscal aspects of M&A transactions, as affected by recent developments in the Australian taxation landscape, and their impact on the overall economics of, and extracting value from, an investment in the oil and gas sector, including: the taxation of farm-in/farm-out arrangements, asset swaps and carry arrangements; structuring the deal consideration for fiscal efficiency; takeover and acquisition vehicle structures; the M&A issues associated with the extension of the Petroleum Resource Rent Tax (PRRT) to the onshore oil and gas industry; consideration associated with capital management, capital structure and financing trends for the industry; exit and repatriation routes—do all roads lead to tax?; managing transaction costs; and, managing tax risks in M&A deals.

Unitisation of petroleum project interests

2015 ◽  
Vol 55 (2) ◽  
pp. 497
Author(s):  
Wee Kenneth
Keyword(s):  
Oil And Gas ◽  
Development Project ◽  
Capital Gains ◽  
Capital Gains Tax ◽  
Resource Base ◽  
Resource Rent ◽  
Petroleum Resource ◽  
Key Issues ◽  
The Impact ◽  
Fiscal Implications

Traditionally, the unitisation of oil and gas project interests involved the exchange of legal ownership interests between project proponents to achieve uniformity of their licence interests across the project. Recently, more contemporary and creative forms of unitisation have emerged including economic, beneficial and contractual unitisation approaches that do not necessarily involve the transfer of legal title interests. Unitisation is a way of pooling resources to improve the likelihood of an economically viable project for participants and to overcome practical challenges resulting from uneven interests in the component parts of a broader project. In some cases, unitisation is the catalyst for project sanction. Achieving agreement and alignment on the most equitable unitisation outcome, including the valuation of the relative resource base and ownership stakes, is not easy. It involves navigating a myriad of legal, commercial, operational and financial considerations. A project residing in both federal and state waters can add increasing layers of complexity due to the interaction between overlapping federal and state jurisdictional and taxing rights. This extended abstract discusses key issues arising in various unitisation models and considers the associated fiscal implications from income tax, capital gains tax, petroleum resource rent tax and royalty perspectives. It also examines the government’s announced tax measures for dealing with the swapping of interests or interest realignments resulting in a common development project and the impact and effectiveness of these rules on unitisation arrangements.

What Does Rent Give to Federal Budget (on the Russia's Budget Dependence upon "Oil Dollars")

2004 ◽  
pp. 51-69 ◽  
Author(s):  
E. Sharipova ◽  
I. Tcherkashin
Keyword(s):  
Oil And Gas ◽  
Strong Dependence ◽  
Oil Prices ◽  
Federal Budget ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
Resource Rent ◽  
Tax Legislation ◽  
Russian Economy ◽  
The Government

Federal tax revenues from the main sectors of the Russian economy after the 1998 crisis are examined in the article. Authors present the structure of revenues from these sectors by main taxes for 1999-2003 and prospects for 2004. Emphasis is given to an increasing dependence of budget on revenues from oil and gas industries. The share of proceeds from these sectors has reached 1/3 of total federal revenues. To explain this fact world oil prices dynamics and changes in tax legislation in Russia are considered. Empirical results show strong dependence of budget revenues on oil prices. The analysis of changes in tax legislation in oil and gas industry shows that the government has managed to redistribute resource rent in favor of the state.

scholarly journals Evaluating the Intra-Industry Comparability of Sustainability Reports: The Case of the Oil and Gas Industry

2019 ◽  
Vol 11 (4) ◽  
pp. 1093 ◽  
Author(s):  
Andrea Cardoni ◽  
Evgeniia Kiseleva ◽  
Simone Terzani
Keyword(s):  
Financial Markets ◽  
Oil And Gas ◽  
Investment Decision ◽  
Methodological Approach ◽  
Oil And Gas Industry ◽  
Global Reporting Initiative ◽  
Gas Industry ◽  
Investment Decision Making ◽  
Sustainability Reports ◽  
Oil And Gas Sector

Environmental, social, and governance (ESG) data are in high demand in financial markets. However, the ESG data provided by companies do not allow for use in the investment decision-making process. The main limiting point for this is a lack of comparability across companies. This paper analyzes the problem of comparability with the aim to evaluate the intra-industry comparability of sustainability reports, framing the analysis on Global Reporting Initiative (GRI) Standards and discussing the results with the support of legitimacy and stakeholder theories. Drawing upon stakeholder and legitimacy theories, as well as financial and sustainability accounting concepts, we propose a theoretical framework of comparability and a methodology to evaluate the level of comparability on a sector-specific basis. The methodological approach adopted in this study is broadly qualitative, with the use of a multiple-stages model. Based on the example of one industry, we discovered that, despite comparability being mostly relevant to the listed companies from the oil and gas sector, the sustainability reports of these companies are still not comparable. Our findings reveal that, despite the availability of a large amount of ESG data and the existence of sustainability frameworks, the problem of comparability is still relevant even for companies that are theoretically most inclined to be comparable.

Taxation aspects of climate change management measures

2010 ◽  
Vol 50 (1) ◽  
pp. 253
Author(s):  
David Lewis
Keyword(s):  
Climate Change ◽  
Financial Reporting ◽  
Oil And Gas ◽  
Global Climate ◽  
Action Plan ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
Resource Rent ◽  
Management Measures ◽  
The Government

Climate change is undoubtedly one of the greatest economic, social, and environmental challenges now facing the world. The present Australian Government is committed to acting on climate change and Australia’s progress towards its emissions reduction targets is being closely watched internationally. To contribute effectively to global climate change action, Australia must demonstrate its ability to implement robust and sustainable domestic emissions management legislation. The Carbon Pollution Reduction Scheme (CPRS), modelled after the cap-and-trade system, continues to be debated by our policymakers, as the Government moves to re-introduce its preferred CPRS legislative package for the third time. The advent of climate change legislation is inevitable and its impact will be far-reaching. This paper reviews the fiscal aspects of the proposed CPRS legislation in the context of the oil and gas industry, and whether it is conducive to creating incentives for appropriate climate change response by the industry. In particular, this paper will consider: the direct and indirect tax features specifically covered in the proposed CPRS legislation and their implications; the areas of taxation that remain uncanvassed in the proposed CPRS legislation and aspects requiring clarification from the tax administration; the interaction between Petroleum Resource Rent Tax (PRRT) and the CPRS measures; the flow-on impacts to taxation outcomes resulting from proposed accounting and financial reporting responses to the CPRS legislation; the income tax and PRRT treatment of selected abatement measures; and, elements of a good CPRS tax strategy and compliance action plan.

Recent Developments in the Law of Interest to Oil and Gas Lawyers

1985 ◽  
Vol 24 (1) ◽  
pp. 143
Author(s):  
Robert P. Desbarats ◽  
Lorne W. Carson ◽  
Donald E. Greenfield
Keyword(s):  
Income Tax ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
Separate Paper ◽  
Judicial Decisions ◽  
Tax Legislation ◽  
Recent Developments ◽  
Federal Income Tax ◽  
The Subject

The purpose of this paper is to discuss recent developments in the la w which are of interest to lawyers whose practice relates to the oil and gas industry. It deals with both judicial decisions and statutory developments during the last year. Some of the cases discussed do not pertain directly to the oil and gas industry. These cases have been included either because they involve situations analogous to those which occur frequently in the oil and gas business or because they concern principles of law which are applicable to that industry. In order to place some limit on the scope of the paper, only federal and Alberta legislative developments are reported. In addition, we have not discussed federal income tax legislation, which is the subject of a separate paper delivered at this year's conference. The review of the legislation is effective as of May 1, 1985.**

scholarly journals American Tax Considerations in the Drafting of Canadian Joint Operating Agreements

1970 ◽  
Vol 8 (2) ◽  
pp. 187
Author(s):  
John F. Curran
Keyword(s):  
United States ◽  
Income Tax ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
The United States ◽  
Gas Industry ◽  
Internal Revenue ◽  
Tax Laws ◽  
The Status ◽  
Tax Benefits

Many operators in Canada's oil and gas industry are subject to taxation under the United States Internal Revenue Code. In their Canadian activities, operations and agreements, these operators seek to preserve any tax benefits that they may have under the income tax laws of the United States. This article outlines the tax advantages which the United States operator wishes to preserve, such as avoidance of the status of an on Canadian operators not subject to United States tax laws, and suggests draft clauses that may be included in Canadian joint operating agreements to preserve United States tax benefits for the American operator.

scholarly journals EVALUASI PERHITUNGAN DAN PELAPORAN PAJAK PPH 22 ATAS PENEBUSAN BAHAN BAKAR MINYAK DI PT.PERTAMINA MANADO

2014 ◽  
Vol 8 (3) ◽  
Author(s):  
Emerald Brilliant Kussoy ◽  
David Paul Elia Saerang ◽  
Winston Pontoh
Keyword(s):  
Crude Oil ◽  
Income Tax ◽  
Oil And Gas ◽  
Descriptive Analysis ◽  
Oil And Gas Industry ◽  
Petroleum Products ◽  
Fuel Oil ◽  
Gas Industry ◽  
State Revenue ◽  
Filling Station

Taxes are the main source of state revenue. Without taxes, the majority of state activities is difficult to be implemented. One of the biggest contributor to state revenue is taxes from the oil and gas industry. Fuel ( BBM ) is one type of fuel produced from refining crude oil . Crude oil from the earth refinery processed in advance to produce oil products, which including the fuel. Associated with the tax code, the fuel tax is the object of section 22 is subject to income tax levied by Pertamina and entities other than Pertamina engaged in the sale of fuel over petroleum products. The purpose of this study is to evaluate the tax calculation and reporting of the top 22 pph fuel redemption is in accordance with the PMK 154/03/2010. The analytical method used is descriptive analysis. The findings of this study is the calculation done by PT. Pertamina on the sale of products or the goods are delivered fuel oil, gas, and lubricants have done well or in accordance with the provisions of applicable tax of 0.30 % of the sales price in the gas station filling station Sindulang as Private, in income tax article 22 reporting PT. Pertamina already fully in accordance with the tax regulations ,reporting not later than 20 days after the tax period ends.

scholarly journals E-PROCUREMENT SYSTEM PENGADAAN BARANG DAN JASA PADA PT. TRAKINDO UTAMA SURABAYA

2019 ◽  
Vol 4 (1) ◽  
Author(s):  
A.A Gde Satia Utama ◽  
Arief Eko Prabiyanto
Keyword(s):  
Power Systems ◽  
Oil And Gas ◽  
Mining Industry ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
Goods And Services ◽  
Heavy Equipment ◽  
Efficiency And Effectiveness ◽  
The Right ◽  
Procurement System

The aim of this study proposes new system for PT Trakindo as an official agent company (dealer) in Indonesia for Caterpillar products. The company’s operations are the world's largest heavy equipment manufacturer which includes mining industry, oil and gas industry, construction, forestry, agriculture, and power systems. The problem is Procurement of goods and services performed by PT Trakindo Utama currently undergoing a lot of obstacles such as significant cost in finding the right suppliers, bad integration with suppliers, dependence on suppliers, the bill submitted by the supplier can not timely because the billing document incomplete, the use of media such as telephone and so on which may cause considerable cost. The contribution of this research are developing the procurement system design, and web-based services are expected to help anticipate and resolve these problems. This research was conducted using qualitative and case study method, which has the characteristics of exploratory. The results achieved are expected to improve the efficiency and effectiveness of the procurement process at PT Trakindo Utama.

scholarly journals Recent Developments in the Law of Interest to Oil and Gas Lawyers

1987 ◽  
Vol 26 (1) ◽  
pp. 152
Author(s):  
Robert P. Desbarats ◽  
Donald E. Greenfield ◽  
Michael J. Hopkins
Keyword(s):  
Income Tax ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
Judicial Decisions ◽  
Tax Legislation ◽  
Recent Developments ◽  
Federal Income Tax ◽  
The Law

The purpose of this paper is to discuss recent developments in the law which are of interest to lawyers whose practices relate to the oil and gas industry. The paper deals with both judicial decisions and statutory developments during the last year. Some of the cases discussed do not pertain directly to the oil and gas industry, but have been included either because they involve situations analogous to those which occur in the oil and gas business or because they concern principles of law which are applicable to that industry. In order to place some limit on the scope of the paper, only federal and Alberta legislative developments are reported. In addition, we have not discussed federal income tax legislation. The review of legislation is effective as of June 1,1987.

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