scholarly journals Taxation of copper and nickel ores mining in Australia, Canada, Chile, Kazakhstan and USA

2022 ◽  
Vol 5 (4) ◽  
pp. 159-174
Author(s):  
N. S. Kostrykina ◽  
A. V. Korytin ◽  
E. V. Melkova
Keyword(s):  
Oil And Gas ◽  
Metal Exchange ◽  
Mining Sector ◽  
Resource Rent ◽  
Nickel Extraction ◽  
Tax Legislation ◽  
Nickel Ores ◽  
Oil And Natural Gas ◽  
Significant Size

The subject. This article discusses the taxation of copper and nickel extraction in Australia, Canada, Chile, Kazakhstan and USAThe purpose of the article is to confirm or disprove the hypothesis that the experience of taxation of copper and nickel extraction in Australia, Canada, Chile, Kazakhstan and USA may be used for modifying the mineral extraction tax (MET) in Russia in order to increase the share of resource rent collected by the government.The methodology of research includes legal interpretation and economic analysis of the tax legislation in United States, Canada, Australia, Chile and Kazakhstan as countries with a well-developed tax system and a significant size of the mining sector in overall GDP.The authors select the legislative acts of these countries and regions that determine the procedure for collecting taxes in the extraction of metal ores, including those containing copper and nickel, as well as in the production of copper and nickel. The selected legislative acts are analyzed to determine the essential parameters of taxation. Particular attention is paid to the method of calculating the tax base, taking into account the approach to assessing the value of the taxable object, permissible tax deductions and exceptions, which allows authors to test the hypothesis put forward by determining which part of the value of a mineral resource is withdrawn during taxation.The main results, scope of application. Mineral extraction tax is the main tool for collecting natural resource rent in Russia. However, the level of taxation of solid minerals and coal is disproportionately low compared to their share in the production and export of raw materials. Thus, in 2018, the amount of MET on all minerals totaled 100.5 billion rubles, while the MET collected from oil and natural gas amounted to 5,979.6 billion rubles, i.e. 60 times as much. At the same time, the role of solid minerals in the Russian economy is comparable to the role of oil and gas. The share of the main types of minerals in the exports of the Russian Federation in 2018 was 20.4% compared to 56% for oil and gas, i.e. the difference of less than three times. The contribution of the industries related to the extraction of minerals and production of metals (mining of coal, ores, diamonds, metallurgy, fertilizer production) to the Russian GDP is about half as much as that of industries involved in the extraction and processing of oil and natural gas (7% and 14% of GDP respectively).In view of the above, it is important to develop a new approach to the taxation of solid minerals in Russia based on the world’s best practices. In order to identify the general principles of their taxation, we have conducted a detailed analysis of the tax legislation in a number of countries with a well-developed tax system and a significant size of the mining sector (the United States, Canada, Australia, Chile and Kazakhstan). We focused on the taxation of copper and nickel ores mining.Conclusions. The analysis of the international experience of taxation of copper and nickel mining sector reveals the following trend: the tax is calculated based on the market value of the extracted minerals, which is linked to the price quotes for the relevant product on an organized metal exchange (for example, the price of pure metal on the London Metal Exchange). This approach can be used in the Russian tax practice in several ways. First, Russia can adopt the Australian model where royalty on a mineral resource can be levied at the time of sale of the useful component irrespective of the processing stage (ore, concentrate or metal). The second potential model is based on the actual sale price of the product (provided it is sold in an arm’s length transaction) after deducting the costs of processing (i.e., smelting, enrichment etc., depending on the stage of processing) to arrive at the market value of the ore at the "mine mouth". The third is the Canadian model which is similar to the second one, but with the extraction costs also deducted from the sale price.

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.

General financial environment 2014

2014 ◽  
Vol 54 (1) ◽  
pp. 467
Author(s):  
Max Williamson
Keyword(s):  
Research And Development ◽  
Oil And Gas ◽  
Carbon Tax ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
Resource Rent ◽  
Oil And Gas Exploration ◽  
Tax Legislation ◽  
Oil Shock ◽  
The Government

Research available from oil and gas industry commodity traders and bankers suggests relatively stable pricing of key commodities for the next two to three years. Barring another oil shock, or similar major international event, that will mean a positive atmosphere for longer term decision making by project developers and regulators. With a new, stable Federal Government and similar persuasion State Governments focused on repealing the carbon tax and developing key infrastructure around Australia including ports, it is not unreasonable to expect a period of real growth and project development, including a resurgence of interest in oil and gas exploration. Doubtless continuing pressure from political lobby groups and parties to try and claim some ground in areas like groundwater re-treatment and usage, and the repeal of the Mineral Resource Rent Tax and the carbon tax legislation packages, will be apparent. How the government may achieve these legislation changes will have significant impact on project feasibility and how projects are designed, operated and managed. Some of the fascinating developments in researching aspects of how the Australian industry will achieve its technical objectives and how they are supported by the research and development tax incentives are worth more than a cursory financial review. With a historically cheap cost of capital there will be increased focus on borrowing methodologies and supporting techniques, with equity only being freely available to the majors. The funding of exploration programs and the determination of what is research and development in those programs will be critical for smaller companies.

FISCAL ROLE OF EXCISE TAX ON EXCISE GOODS MANUFACTURED IN UKRAINE IN CONDITIONS OF CONSTANT CHANGES IN TAX LEGISLATION AND PANDEMIC COVID-19

2017 ◽  
Author(s):  
Natalia Rudenko ◽  
◽  
Tatiana Tuchak ◽  
Keyword(s):  
European Integration ◽  
Economic Crisis ◽  
The State ◽  
Excise Tax ◽  
Tax Revenues ◽  
Tax Legislation ◽  
Economic Stagnation ◽  
Legislative Framework ◽  
Main Factors

The article analyzes the fiscal role of the excise tax on excisable goods (products) produced in Ukraine in the context of permanent changes in the tax legislative framework and within the framework of the global crisis through the coronavirus disease COVID-19. The concept of excise tax has been substantiated, a list of excisable products (goods) has been provided in accordance with legislative acts, the payers of this tax have been specified. The most important events and transactions that influenced the amount of tax revenues from excise tax are investigated. The authors believe that the main reason for the changes in the administration process and the receipt of the excise tax are the European integration transformations and the conditions of the global socio-economic crisis. Based on the difficult economic situation in the state, some legislative acts regulating the collection of excise tax from excisable products produced in the country were considered. It was revealed that a moratorium on the payment of excise tax was imposed on the territory of the studied state for a certain period. This event made its own adjustments to the proceeds from the payment of excise tax on excisable products (goods) produced domestically, and also allowed domestic producers to move from the place of economic stagnation. In Ukraine, they began to actively manufacture and sell antiseptic and disinfectants of their own production to protect citizens. According to the data of the State Treasury Service of Ukraine, the authors analyzed the indicators of tax revenues for each type of excisable products (goods) of domestic production. It was revealed from which products more tax was received during the study period. The main factors that influenced the receipts of excise tax from excisable goods produced on the territory of Ukraine in the period of 2019, as well as for 9 months of 2020, have been determined.

The Role of Migration in the Formation of Regional Labour Markets Amidst the Second Wave of Depopulation in Modern Russia

2020 ◽  
Vol 27 (6) ◽  
pp. 26-36
Author(s):  
A. V. Topilin ◽  
A. S. Maksimova
Keyword(s):  
Labour Market ◽  
Oil And Gas ◽  
Labour Markets ◽  
Labour Migration ◽  
Sample Surveys ◽  
Balance Sheets ◽  
Permanent Migration ◽  
Regional Labour Markets ◽  
The Impact

The article reflects the results of a study of the impact of migration on regional labour markets amidst a decline in the working-age population in Russia. After substantiating the relevance of the issues under consideration, the authors propose a methodological analysis toolkit, the author’s own methodology for calculating the coefficients of permanent long-term external and internal labour migration in regional labour markets, and the coefficient of total migration burden. In addition, the authors provide an overview of the information and statistical base of the study. According to current migration records, data of Rosstat sample surveys on Russian labour migrants leaving for employment in other regions, regional labour resources balance sheets based on the calculated coefficients of labour market pressures, the authors analyzed the impact of migration on the Russian regional labour markets over the past decade. It revealed an increasing role of internal labour migration in many regions, primarily in the largest economic agglomerations and oil and gas territories. At the same time, the role of external labour migration remains stable and minimum indicators of the contribution of permanent migration to the formation of regional labour markets continue to decrease. It has been established that irrational counter flows of external and internal labour migration have developed, which indicates not only an imbalance in labour demand and supply but also a discrepancy between the qualitative composition of migrants and the needs of the economy. It is concluded that the state does not effectively regulate certain types of migration, considering its impact on the labour market. The authors justified the need for conducting regular household sample surveys according to specific programs to collect information about labour migrants and the conditions for using their labour. In addition to the current migration records, using interregional analysis, this information allows making more informed decisions at the federal and regional levels to correct the negative situation that has developed in the regional labour markets even before the coronavirus pandemic had struck.

The Role of Oil and Gas in the Economic Development of the Global Economy

2018 ◽  
Author(s):  
Paul Stevens
Keyword(s):  
Economic Development ◽  
Global Economy ◽  
Oil And Gas ◽  
Primary Energy ◽  
Oil And Gas Producers ◽  
The Future ◽  
History Of ◽  
Factor Inputs ◽  
The Impact

This chapter is concerned with the role of oil and gas in the economic development of the global economy. It focuses on the context in which established and newer oil and gas producers in developing countries must frame their policies to optimize the benefits of such resources. It outlines a history of the issue over the last twenty-five years. It considers oil and gas as factor inputs, their role in global trade, the role of oil prices in the macroeconomy and the impact of the geopolitics of oil and gas. It then considers various conventional views of the future of oil and gas in the primary energy mix. Finally, it challenges the drivers behind these conventional views of the future with an emphasis on why they may prove to be different from what is expected and how this may change the context in which producers must frame their policy responses.

Financing Energy Access in Africa

2018 ◽  
Author(s):  
Peter Kayode Oniemola ◽  
Jane Ezirigwe
Keyword(s):  
Oil And Gas ◽  
Sub Saharan Africa ◽  
Capital Investments ◽  
Energy Access ◽  
African Countries ◽  
Sustainable Technologies ◽  
Energy Technologies ◽  
Sub Saharan ◽  
Diesel Motors

To achieve universal energy access will attract huge capital investments. If sub-Saharan Africa is to realize anything close to the ambitious goals set for its energy access, then new actors, innovative funding mechanisms and sustainable technologies will have to be attracted. Finance is needed for activities such as rural electrification, clean cooking facilities, diesel motors and generators, other renewable energy technologies, oil and gas infrastructures, etc. Finance is also needed in research and development of suitable technologies and funding options as well as investment in the capacity to formulate and implement sound energy policies. This chapter examines the varied financing options for energy access in sub-Saharan Africa. It argues that with appropriate laws in place and effective mechanism for implementation, African countries can significantly engage private sector financing, international financial institutions and foreign donors. The role of the law here will be in creating an enabling environment for financing.

Executives’ Decision Processes at the Front End of Major Projects: The Role of Context and Experience in Value Creation

2020 ◽  
pp. 875697282097722
Author(s):  
Denise Chenger ◽  
Jaana Woiceshyn
Keyword(s):  
Value Creation ◽  
Oil And Gas ◽  
Decision Processes ◽  
Strategic Decision ◽  
Decision Context ◽  
Front End ◽  
Risk Approach ◽  
Multiple Case

The front end of projects is strategically important; yet, how project concepts are identified, evaluated, and selected at the pre-project stage is poorly understood. This article reports on an inductive multiple-case study of how executives made such decisions in major upstream oil and gas projects. The findings show that in such a high-risk context, often an experienced executive makes these decisions alone and he creates value by facilitating growth. We identified three value-creating decision processes that varied by the executives’ risk approach and decision context. These processes depart from the formal project management prescriptions and the strategic decision-making literature.

Patchwork of oil and gas facilities in Saudi waters of the Arabian Gulf has the potential to enhance local fisheries production

2015 ◽  
Vol 72 (8) ◽  
pp. 2398-2408 ◽  
Author(s):  
Lotfi Rabaoui ◽  
Yu-Jia Lin ◽  
Mohammad A. Qurban ◽  
Rommel H. Maneja ◽  
Javier Franco ◽  
...  
Keyword(s):  
Oil And Gas ◽  
Arabian Gulf ◽  
Habitat Characteristics ◽  
Small Fish ◽  
Faunal Assemblages ◽  
Fishery Resources ◽  
Management Measures ◽  
Coastal Embayments ◽  
Oceanographic Variables

Abstract Because of the increasing oil industry development in the Arabian Gulf, hundreds of oil and gas facilities have been installed in both offshore and inshore areas during the last few decades. However, no studies have been conducted till now on the influence of these platforms on the structure and composition of marine faunal assemblages. The present work addresses this issue to propose environmental management measures connected to the utilization of fishery resources. Offshore and inshore surveys were carried out along the Saudi Gulf waters using trawl and beach-seine nets, respectively. Data relative to only fish (offshore) and fish and invertebrates (inshore) were collected concurrently with several factors: density of oil and gas facilities (offshore), distance to the nearest coastal platform (inshore), oceanographic variables, and habitat characteristics. Results of offshore surveys indicated higher fish density—both total and of fishery resources—in locations with a higher number of oil and gas facilities within a 5 km radius, whereas biomass density was not significantly different. Hence, oil and gas facilities seem to serve as nursery areas for small fish. For inshore communities, more species and diversity were found in stations closer to coastal oil and gas facilities. In addition, among the five coastal embayments sampled, those with more oil and gas facilities had more species. The findings of the present work support the hypothesis of a positive net ecological role of oil and gas platforms of the Saudi Arabian Gulf, with the implication that this effect could be extended to improve the sustainability of important fishery resources.

A Review on Oil and Gas Pipeline Safety

2007 ◽  
Author(s):  
Rakesh Yarlagadda ◽  
M. Affan Badar ◽  
Boris Blyukher
Keyword(s):  
Risk Management ◽  
Shock Waves ◽  
Oil And Gas ◽  
Critical Role ◽  
Terrorist Attacks ◽  
Manufacturing Defects ◽  
Material Defects ◽  
Oil And Natural Gas ◽  
Pipeline Safety ◽  
Day By Day

The safety of oil and gas pipelines has increasingly considered day by day to their vulnerability. Pipelines play a very critical role in the transportation of oil and natural-gas. As they have become the veins of oil industries, the productive design and analysis became more important. This made them more vulnerable to terrorist attacks. Although it is impossible to design pipelines to withstand any conceivable damage due to external (terrorist attacks, seismic effects) and internal effects (design and manufacturing defects), it is possible to improve the performance of pipelines. By understanding the design criteria, it saves lots of money and more over human lives and also protects the product in pipelines, which cannot be recovered and which is more and more scares day by day. This research aims: 1) to understand the different types of pipeline damages, reasons for their occurrence and their effects on the pipelines, such as mechanical damages, material defects, cracks, manufacturing defects, 2) to understand the explosions in pipelines, internal or external explosions and seismic distress, 3) to do research and literature review in analytical and numerical methods which allow researching the influence of shock waves (explosions, seismic), 4) to develop description of experimental research of pipelines subjected to shock waves (explosions, seismic), 5) to establish an effective methodology (develop mathematical model) to study the risk management in pipeline exploitation which can be subjected to such conditions like shock waves (caused by explosions, seismic, as well as mining activities) on pipeline systems (buried, on surface, or underwater), and 6) to establish criteria for risk management. This paper includes a review of the related literature covering the first two goals.

NATURAL RESOURCES AND RENTAL PAYMENTS: DIFFERENTIATION OF THE CONCEPTS

2020 ◽  
pp. 35-40
Author(s):  
Galina Titarenko ◽  
Oleksandra Titarenko
Keyword(s):  
Natural Resource ◽  
Economic Activity ◽  
General Nature ◽  
Economic Management ◽  
Resource Rent ◽  
Tax Legislation ◽  
The Difference ◽  
Business Entities ◽  
National Tax ◽  
Favorable Conditions

In the article the issue of concepts of natural resource rent and rent payment differentiation is actualized. It is stated that rent payment can be considered only that payment, which is made from entrepreneurial profit in the amount, which is caused by the difference between its normal level and surplus. The main criteria for rent payment are the following: it is shown as part of the entrepreneur's income. If you do not expect to receive entrepreneurial income, then such a payment can not be considered as rent. Then it is only a payment for the use of a resource in an economic activity, that is, a fee (formed at a cost approach or as a result of market equilibrium mechanisms) or a levy (quasi-fiscal fiscal payment of a permissive nature, that is, a fiscal levy), or a license fee for the use of a resource; it is paid not for the fact of using the resource in economic activity, but for receiving excess entrepreneurial income for the labor and capital expended because of more favorable conditions than other entrepreneurs. If there is no such excess profit, then the rent payment cannot be considered as it does not have an excess, rent component. It is noted that the rent payment today is a payment for the use of the resource or property rights tax, instead of fully removing the rent from the user's income. It is pointed out the need to revise the terminology used in the tax legislation, to clearly distinguish between concepts and, accordingly, fiscal instruments, such as: the fee for the special use of the resource, which is compensatory, compensatory and unconditionally paid by the natural resource for the involvement of the natural resource in its economic management and use economic purposes; the object of taxation is actually the resource (its quality, quantity), and the fact that determines the fiscal obligation is the exploitation of the resource by the user; tax, which is of a general nature and is paid by the owner of the taxable resource, whether or not the resource is used in business and income generation; rent (payment), which should be deducted from entrepreneurial profits in order to remove the income earned by an entrepreneur from his or her certain advantages over other entrepreneurs of the industry or business sector due to more favorable conditions than other business entities. Amendments to the national tax legislation need to be made to clearly define the terminology and appropriate mechanisms for applying these fiscal instruments in the economic activity of the state, which will, on the one hand, effectively tax property and apply a mechanism for levying resources to offset environmental costs, and the other is to fully remove from the entrepreneurs the rents they have earned for government purposes.

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