Back Matter

Author(s):
International Monetary Fund
Published Date:
April 2010
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    Index

    Page numbers in italic refer to tables. Page numbers in bold refer to figures.

    abandonment costs 109

    accelerated depreciation 96 activity rules 307, 308, 309, 311, 312, 314

    ad valorem royalties 29, 53, 127, 132, 140–3

    ad valorem (value-based) taxes 320–1

    additional profits tax 125–6, 254, 255

    administration and compliance costs 134–5,140,142

    administrative capacity 361–6

    administrative functions and procedures 341–56

    advance petroleum revenue tax (APRT) 111

    advance pricing procedure 348

    advanced pricing agreements (APAs) 390–1

    Afghanistan 255

    Africa 76, 83–4

    agree-to-negotiate formulation 411–12, 417

    Algeria 110, 175

    Allowance for Corporate Equity (ACE) 32–3, 35, 63, 381–2,383

    Anglo-Dutch clock bidding 312

    Angola 106–8, 174–5, 252, 325

    anti-corruption programs 370

    arm’s-length prices 167, 171, 183, 348, 349, 389, 390

    ascending auctions 41 assurances of integrity 370–1

    asymmetric information: and auctions 53, 62, 81;

    • in contractual relationships 431;

    • and low-income countries 77;

    • in petroleum industry 431–5;

    • and resource tax design 23–4, 53–6;

    • and royalties 63,81

    auctions 40–2;

    • approaches 313;

    • and asymmetric information 53, 62, 81;

    • and competition 291,292, 295–6, 300;

    • for natural resources 289–315;

    • packaged approach, China 84;

    • for price discovery 81

    audit adjustments 353, 354

    audit powers 351

    audits of tax administration 370–1

    Australia 108, 109, 139, 374, 388;

    • North West Shelf LNG 174;

    • petroleum resource rent tax (PRRT) 252, 254, 255, 256, 390;

    • residual price mechanism (RPM) 171–2

    average effective tax rate (AETR) 45–6, 47–9, 60, 199, 200–1, 218, 221

    barriers to new entry 43

    beauty contests 41, 291–2

    Belgium 381, 383

    benchmark prices 348–9

    bid variables 42

    bidder asymmetries 301, 312, 314

    bidder competition 291

    bidder-optimal core 311

    bidder preferences 290, 294–9

    bilateral income tax treaties 410–11

    bilateral investment treaties 411

    bilateral negotiation 255

    blocks of resources 41, 42

    Bolivia 109, 127, 128, 280–1

    bonus bids 299, 300

    bonuses 42, 97, 320

    booking of reserves 113

    borrowing, low-income countries 77, 79, 82–3

    borrowing costs 39, 195

    Botswana 129, 249

    Brazil, state participation 277–8

    breakeven prices 170–1, 174, 200, 202, 218, 221

    Brown Tax 32, 33, 35, 131, 137

    business taxes 322, 335

    buyback agreements 103–4, 117

    Canada 374, 382, 388

    capacity strengthening, resource taxation 364–5

    capacity to invest 79

    capital allowance 172

    capital asset pricing model (CAPM) 226–7

    capital costs 172

    capital gains 328, 411

    capital scarcity 77

    carried equity participation 266–7

    carried interest 40, 132, 139, 267

    cash calls 271, 272

    cash flow-based rent taxes 35, 63–4

    cash flow equivalent tax schemes 33, 36

    cash rebates 131, 138

    cash subsidies, investments 57

    Central America 380, 381

    central banks 78, 369, 425

    centralized tax administration 356–8

    certainty equivalent approach 143–4

    certainty-equivalent cash flows 196

    certainty-equivalent discount rate 50

    certainty equivalent value (CEV) 143, 144, 145, 148, 149

    Chad 78

    charges 42–3

    Chile 125, 127, 128, 284–5, 409, 418

    China 83–4, 129

    CIT see corporate income tax

    clock bidding 311, 312

    clock stage, auctions 290, 306–9, 310

    code of conduct, regional 380, 381

    collusion 41, 81, 296, 297, 298, 306, 369

    Colombia 278

    commercial and fiscal objectives, state participation 268

    commercial efficiency, NRCs 273

    commitment device 59

    commitment hypothesis 409

    commitment technologies 78, 80, 84

    commodity prices 82, 83, 241, 242

    common values, auctions 294

    competitive bidding, resource rent 255

    concessionary regimes 93, 94–5, 97, 105, 112

    condensate 175

    confidentiality of values 309–10

    conflicts of interest 273–4

    consumption scarcity 77

    contract renegotiation, and fiscal stability assurances 419–20

    contractual assurances of fiscal stability 405–20

    contractual regimes 93, 98–104

    Controlled Foreign Corporations (CFCs) 391–2

    copper mining 125–6, 283–5, 414, 415–16

    copper prices 20, 21, 125, 126, 283, 284

    corporate income tax (CIT) 43–4, 60, 96, 99, 101, 108, 127, 131;

    • CIT design 393–6;

    • international trends 378, 379–84;

    • and mining 127, 128,131, 189;

    • and natural gas 169;

    • and petroleum 96;

    • rates 379, 380, 386;

    • regimes 381–4;

    • revenues 379–80

    corporate profits 380

    corporate reorganizations 394–5

    corporate tax competition 379–81

    corporation tax (CT) 96, 110, 111, 252

    corrective taxes 42

    corruption 81, 291, 300, 350, 357, 366

    cost of capital 195, 226–7, 252

    cost oil 39, 99, 100, 407

    cost-plus price 171–2

    cost recovery 99–100, 101–2, 252, 267

    cost recovery audit 354–5

    country risk, minerals 124

    country take 172

    credible commitment 426–35

    Croatia 381, 383

    cross border fields 393

    customs and excise duties 127, 397–8

    deadweight losses 426, 427, 429

    debt to equity ratio 382–3, 391

    decision analysis, of exploration 228

    decision tree approach 197–8

    Democratic Republic of Congo 128

    Denmark 276–7, 382

    depleting natural assets 75, 76, 77, 78

    depletion allowances 43

    depreciable assets 32

    depreciation rates 37

    developing countries: and auctions 289, 300–1;

    • and progressive profit taxes 323, 324–9;

    • and tax administration 344–8

    development phase and costs 16, 17, 28, 46, 103–4, 135

    development tracts 296, 301

    differentiation across projects 25

    differentiation of royalties 29

    direct state participation 263, 264, 265, 274

    direct tax instruments 129

    discount rates: and AETR 46;

    • and NPV 195, 201;

    • and rent taxes 35, 36;

    • and resource tax design 25, 49–51

    discounted cash flow (DCF) 194–6

    discovery bonuses 97

    discovery process, low-income countries 76, 80–1

    discrete bidding rounds 305, 307, 308

    dispute resolution, audits 355–6

    distortions 24, 29, 31, 63, 431, 432

    dividend distributions 382

    dividend withholding tax 210, 284, 383, 384, 411, 418

    dividends 382, 383, 385, 391

    domestic market obligation (DMO) 101

    domestic prices, natural gas 182

    double tax relief 326, 335, 336, 382, 383

    double taxation 257, 323, 336, 384–8, 410–11

    double taxation agreements (DTAs) 22, 257, 335, 382, 383, 392

    double taxation treaties 210, 383, 387–8

    drainage tracts 296, 301, 302

    drilling, decision analysis 228

    Dutch Disease 270

    dynamic regulation models 431–5

    earmarking: resource revenues 77, 78;

    • spending from borrowing 83;

    • tax revenues 43

    economic efficiency 132–3, 380

    economic profits 31–2, 37

    economic rent 15, 135, 136, 138, 143, 166–7, 406

    Ecuador 109

    effective tax rates 45–9, 191, 202

    efficiency, resource rent tax 248–51

    efficiency losses 28–9, 132, 140, 141

    energy prices 182

    engineering design studies 228

    English auctions 302, 304

    enhanced oil recovery (EOR) 100, 103

    equity financing 382

    equity interest 172, 173, 248, 267

    equity participation 40, 127

    equity returns 271

    Estonia 382, 383

    ethical codes, tax officials 370

    European Union 380, 381, 393

    European Union Parent-Subsidiary Directive 382

    excess profits taxes 80, 131

    exemption system 384

    exhaustibility 25–7

    expected monetary value (EMV) 197, 198, 228–9

    expected net present value (ENPV) 143, 144

    expected rate of return 202

    expected risk index 202

    expected yield index 203

    exploration: costs 16, 17, 28, 96, 135;

    • and investment 82, 198;

    • phase 16, 28, 46;

    • risk 252–3;

    • risk analysis 227–9

    export duties 397–8

    export prices, natural gas 178–80, 182

    export taxes 31, 42, 397

    exposure problem 297, 298, 304, 307, 308

    expropriation 58, 115, 300, 425

    extraction path 28

    extraction phase and costs 16, 17, 25, 46, 81

    extraction rights 81, 83–4

    Extractive Industries Transparency Initiative (EITI) 129, 369, 371

    favoritism 291, 292, 300

    finance ministries 274, 354, 355, 356, 357–8, 373

    first-come-first-served negotiation, mining 291

    first-price sealed-bid auctions 290, 301, 302, 312–13, 314

    fiscal accounts 27

    fiscal arrangements 93–104

    fiscal constitution 78

    fiscal instruments in mineral taxation 124–5, 129–35

    fiscal loss 134

    fiscal regimes: design 105–9;

    • mining and petroleum 406–7;

    • for resource projects 187–225

    fiscal revenues 181, 182

    fiscal ring fences 173, 174

    fiscal risk 114, 409, 420

    fiscal stability 114–15

    fiscal stability agreements 428

    fiscal stability clauses 58, 405–20, 428

    Manual on Fiscal Transparency 366, 371

    flexibility: in integrated budgets 78;

    • rent collection 133;

    • in tax system 115, 245, 247

    foreign direct investment 128, 411

    foreign financial assets 79, 82

    foreign investment 19

    foreign levy 386

    foreign oil and gas extraction income (FOGEI) 386

    foreign oil related income (FORI) 386

    foreign-owned firms 22, 23

    foreign tax credits 44, 101, 328, 383, 384–8

    forward contracts 332

    forward-looking AETR 199

    free equity participation 267

    Free on Board (FoB) price 173, 176, 178, 179, 180

    frozen law formulation 411, 412, 416–17

    full equity participation 266

    funding: of state participation 269–73;

    • for tax administration 364

    Future Generations Fund model 78, 79

    future tax policy 56, 58, 408, 426, 427

    gas see natural gas

    gas transfer price (GTP) 171, 174

    geared royalties 81–2

    geological risk assessment 227

    geological uncertainties 81

    geology 19–20, 23, 62

    Germany 382

    Ghana 127, 128, 252

    gold mining 39, 414–15

    gold plating incentives 254, 328

    governance 14, 57, 129, 268–9, 366–71

    government: and borrowing 82–3;

    • credible commitment 76–7, 426–7, 428, 429;

    • and discount rates 49–51;

    • and equity holdings 40;

    • and fiscal regime 202–3, 406;

    • and fiscal stability assurances 407–10, 420;

    • and investors 15, 19, 35, 56–8, 244;

    • policy, oil 90–104;

    • regulation 166, 171, 174, 321;

    • reputation and investment 57–8;

    • and resource tax reform 371–2;

    • revenue 17–19, 41–2, 201, 251;

    • and risk 52, 133, 191–2, 215–17, 218–20;

    • share of total benefits 203, 217; sovereign rights, oil 112;

    • state-run operations 53;

    • and tax base 15

    government take: and AETR 200–1;

    • and fiscal design 105, 106;

    • mining 271, 272;

    • natural gas 178;

    • oil 271, 272;

    • and risk sharing 116;

    • and transfer pricing 170–1

    graduated price-based windfall tax 132

    grandfathering 413

    gross royalty 95–6

    Guide on Resource Revenue Transparency 366, 371

    Guyana 127

    hedging instruments, taxation of 331–4

    Henry Hub spot price (US) 179

    high-income countries 77–80

    hold up problem 15

    host governments and investors 24

    Hotelling rent 16, 25, 191

    hurdle rate 194, 195, 196, 205–6

    import duties 44, 397

    in-country costs, natural gas 180–1

    incentive constraint 434

    incentive regimes 76

    incentives: for investors 15;

    • for tax setting 24

    income tax audit 354–5

    incomplete contracts 427–8

    independent power projects (IPP) 167

    indirect taxation 129, 396–8

    individual lot bids 297, 311, 312

    Indonesia 128, 278–9

    industrial linkages 19

    industry costs 141

    inflation 381

    information exchange between tax authorities 392–3

    information powers 351

    information rent 433, 434

    infrastructure owners (IOs) 180–1

    infrastructure provision 42, 83–4

    institutional capacity 274

    institutions: robustness of 76;

    • and tax audits 356–71

    intangible assets 32

    integrated budgets 77–9

    integrated projects, natural gas 167, 168, 171, 173–4

    integrated tax administration system (ITAS) 363

    integrity of tax administration 370–1

    interdependent values, auctions 294

    interest: charges for tax underpaid 346, 347;

    • deductibility against corporation tax 382–4;

    • deductions 33, 199, 256, 328, 391;

    • expense 96, 99, 108, 256;

    • paid on debt 32;

    • rates, signature bonuses 82;

    • rates, world 79, 82

    internal audits 352, 370

    internal rates of return (IRR) 195, 202

    international arbitration, tax audits 356

    international considerations for tax 22–3

    international corporate tax trends 379–84

    international investment agreements 58

    International Monetary Fund (IMF) 264, 366, 371, 373, 374

    International Oil Companies see IOCs

    international tax: competition and coordination 60–2, 380–1;

    • and government policy 323, 335;

    • issues 378–98

    intertemporal trade 51, 52

    investment: costs 16;

    • in development 46, 47, 48;

    • in extraction process 76–7;

    • incentives 100, 127, 299, 426;

    • and pace of exploration 82

    investor risk, perception of 132, 192–3, 217–18, 220–2, 246

    investors: and discount rates 49, 51;

    • and resource projects 15

    IOC-NOC cooperation 90, 91, 92–3

    IOCs: and Angola 106, 107;

    • and buyback agreements 104;

    • and contractual regimes 98;

    • and PSCs 99, 115, 116;

    • and risk 116–17;

    • and service contracts 118;

    • and state participation 264

    Iran 118

    IRR-based sliding scale for profit oil 106

    IT support for tax administration 363

    Jamaica 127

    joint operating agreements 351–2

    joint ventures 19, 22, 127, 351

    Kazakhstan 129, 303, 388

    Kosovo 255

    Kurdistan 411–12

    Kuwait 104

    labor taxes 396

    large taxpayer office (LTO) 359

    late payment of tax 345–7

    lease bonuses 97

    legal assurance, future tax policy 58

    legal risks 300

    Liberia 129, 255, 411

    Libya 299, 302–3, 314

    license agreements 319, 320, 329

    license areas 326, 329

    licenses, auctions 290, 293, 306

    liquefied natural gas (LNG) 163, 164, 165, 167, 168

    loans from public agencies 82

    long-term government bond rate (LTBR) 139, 144

    loss-offset 43, 138, 139

    losses 36, 43

    lot-by-lot monotonicity 307, 311, 312, 314

    low-income countries 62, 75–85

    low tax jurisdictions 391

    macroeconomic management 269, 275

    Malaysian LNG (MLNG) project 169–70, 172

    managerial flexibility 196–7

    marginal benefit 25

    marginal cost 25, 46

    marginal effective tax rates (METRs) 46–9, 199, 200, 201, 225

    marginal tax rate 38, 39, 191, 254, 380

    market power 24, 305

    market value 348–9

    Mexico 91, 282–3

    midstream taxation, natural gas 169–74, 183

    mineral exports 122, 123

    mineral fiscal regimes 123–9

    mineral prices 124, 125, 127, 128–9

    mineral taxation 122–59;

    • selected countries 150–9;

    • simulations 143–9

    minerals-rich countries 265, 266

    minimum tax 53

    mining agreements 405, 407, 410, 416, 420

    mining industry, tax audits 352

    mining tax regimes 324

    mixed system, mineral taxation 142–3

    mobile capital 199, 379

    monetary policy 425

    Mongolia 129, 415–16

    monopoly 84, 90, 93

    monopoly rents 254

    monotonicity 307

    Monte Carlo simulations 196, 201

    “Mozambique” simulation 203–24

    multinational companies 22–3, 384–5, 389, 392

    multiple fiscal regimes 255

    Namibia 128, 249, 255

    national audit offices 370

    National Balancing Point (NBP), UK 179

    National Energy Board (NEB), Canada 179

    national mining companies (NMCs) 265

    National Oil Companies see NOCs

    national resource companies (NRCs): and governance 269;

    • policy and regulatory functions 359, 368;

    • and PSA regimes 329, 345;

    • as regulator 273, 274, 359, 368;

    • and state participation 266–8;

    • and tax administration 356, 359, 360–1, 365;

    • and tax audits 354–5

    nationalization, mining 126, 127, 243

    natural gas: comparison with oil taxation 174–6;

    • domestic demand 165, 166, 182;

    • exports 163, 165;

    • and oil prices 176–7;

    • pricing and taxation 178–82;

    • pricing policies 170;

    • production profiles 177–8;

    • resources and demand 163–5;

    • risks 166–7;

    • sales agreements 183;

    • taxation 169–78;

    • value chain 165–9

    natural gas liquids (NGLs) 175

    negative lifetime rents 36

    negative tax liabilities 57

    net cash flow, resource rent tax 247

    net cash flow under contractual systems 101–2

    net present value (NPV) 143, 144, 194–6, 198, 201

    netback prices 171–2, 180

    Netherlands 311

    neutrality 132, 190, 191, 194, 212–14, 248–51

    Nigeria 78, 79, 174, 182, 270, 272

    Nigerian National Oil Company (NNPC) 270, 272

    no switching rule 307, 314

    NOC equity 172, 173

    NOCs 90, 91, 103–4, 172, 187, 263–4

    non-civil service agencies, tax administration 360–1

    non-discrimination provisions 405, 410, 420, 440

    non-distorting tax 16, 38, 63

    non-economic objectives, state participation 267–8

    non-recourse project finance 272–3

    non-routine functions, tax administration 342, 348–56

    non-tax instruments 129

    non-tax revenues 27

    nonlinear royalty 55

    normal profits 80

    North Sea 112

    North West Shelf LNG, Australia 174

    Norway: concessionary regimes 108, 113;

    • double taxation treaties 388;

    • fiscal stability 114;

    • petroleum taxation 109, 426–42;

    • Snøhvit LNG 173–4;

    • state participation 275–6

    Norwegian continental shelf (NCS) 426–7, 429–30, 432, 436–7, 438–9

    Norwegian model 85, 435–6, 442

    obsolescing bargain 15

    OECD: and information exchange 393;

    • and transfer pricing 389–90

    OECD countries 76, 78, 80, 85, 92, 187

    offsetting change, fiscal stability clauses 417

    offshore auctions, US 302

    oil industry 89–90

    oil prices 20, 109–12, 114, 127, 176, 177, 205, 206

    oil producing strategies 91–3

    oil production profiles 177–8

    oil rights, auctions 289, 294, 301–3

    oil taxation, comparison with natural gas 174–6

    Oil Taxation Act 1975 110

    Okpai IPP, Nigeria 174

    onshore auctions, US 302

    OPEC quota restrictions 113

    open bidding 295–6

    opportunity costs 30

    optimal tax design 53–5

    Organization of Petroleum Exporting Countries (OPEC) 127, 263

    output-based royalties 132, 133, 134, 140–2

    output prices 20, 200

    outsourcing of tax administration 365–6

    ownership of oil resources 112

    package bids, auctions 297–8, 311

    package clock auction 290, 306–10, 311

    package values, auction lots 294–5

    packaged contract 84

    paid equity 132, 134

    Papua New Guinea 125–6, 127, 128, 241, 242, 252, 409–10

    pay-as-bid 311

    pay on behalf PSCs 101

    payback 75, 96, 109, 124, 202

    payback ratio 100, 131

    penalties: self assessment 342, 343, 353;

    • underpayment of tax 346, 347

    permanent establishment 387

    permanent income hypothesis 79

    Peru 127, 128, 419

    petroleum agreements 405, 407, 410, 416, 420

    petroleum fiscal regimes 89–119

    Petroleum Profits Tax (PPT) rate 174

    petroleum rent 432

    petroleum rent tax (PRT) 111

    petroleum resource rent tax (PRRT) 109, 171, 252, 254, 255

    petroleum-rich countries 264–5

    petroleum taxation 425–42

    physical audit procedures 302, 348, 349, 357

    policy makers 23–4, 49

    policy responses, state participation 274–5

    political interference, and tax administration 371

    political pressure 58, 59–60, 78

    political risks 21, 40, 49, 300, 425

    politics of resource tax administration reform 371–4

    positive lifetime rents 36

    poverty, in resource-rich countries 83, 129

    premature closure of operations 28

    present value-equivalent rent taxes 33–5, 36, 37

    price boom (2002–2008) 129, 187, 188

    price discovery 41, 290, 304, 306, 307–9

    price-linked tax 249

    price regulation 176, 181

    price shocks (1970s) 127–8

    price uncertainty 20

    pricing of production 348–9

    private competition, mining 125

    private information: auctions 294, 296;

    • in petroleum sector 431, 432, 433

    private ownership, oil 90, 91, 92, 93, 112–13, 187

    private sector investment 268, 270, 271, 275

    private values, auctions 294

    privatization, mining 126, 128

    producers, selection of 40–1

    product definition, auctions 290, 293

    production bonuses 97, 101

    production costs 25, 135

    production profiles, gas and oil 177–8

    production sharing 39, 248, 267, 300, 342

    production sharing agreements (PSAs) 39, 98;

    • and fiscal stability 413;

    • and national resource companies (NRCs) 329, 345;

    • and tax audits 352, 354–5, 356;

    • transparency issues 368

    production sharing contracts (PSCs) 98, 99–101, 105–6, 107, 115, 299, 407

    production taxes 324

    profit-based royalties 29–30, 127, 131, 132, 133, 134

    profit-based taxes 321

    profit oil 39, 99, 100–1, 106, 355, 356, 407

    profit-shifting 44, 59, 60

    profit taxes 249, 250

    progressive fiscal regime 245, 246

    progressive profit taxes 323, 324–9

    progressive rent tax 38, 66

    progressivity 37–9, 48–9, 52, 58–60, 194, 214–15

    project-based approach, tax design 24–5

    project delays 272, 273

    project profitability: minerals 143–9;

    • natural gas 176, 183

    project risk 133

    property rights 31, 42

    proportional tax 38

    prospecting process 80–1

    prospectivity gap 203, 222–4

    PSA regimes 329, 345, 356

    public availability of information 369–70

    public funds at risk 270–1

    punishment strategy for investors 57

    punishments, auctions 296

    Qatar 173

    quality of resource deposits 244–5, 289

    quasi-rents 16–17, 28, 31, 38, 58, 66

    R-based cash flow tax 32

    R-factors 100, 131, 210, 212, 249, 251

    RasGas LNG, Qatar 173

    ratchet effect 433, 434, 437, 439, 440

    rate of return (ROR) 100

    rate of return scheme 210, 212

    rate of return thresholds 247, 252–3

    rationing schemes 40–1

    R&D expenses 17

    real assets 197

    real option method 197

    reference law 416–17

    regional cooperation and coordination 380–1, 391

    regional taxes 326–7

    regional treaties 380, 381

    regressive fiscal regime 194, 243, 245, 246

    regulation: government 166, 171, 174, 321;

    • of resource operations 329, 357

    regulation theory 429, 431, 432, 433

    regulatory framework 91, 93, 104, 114, 116, 119, 435

    renegotiation: adverse 300;

    in mining 125, 126, 243, 244

    rent-based taxes 31–7, 55, 56, 63, 131, 137–9

    rent capture mechanisms 321–2

    rent collection 133

    rent extraction 16, 23

    rent potential 246–7

    rents 80, 427

    repeated game 429–31

    reserve prices, auctions 298–9

    residual price mechanism (RPM) 171–2

    resource constraint 431, 434, 435

    resource extraction 25, 26–7, 76–7

    resource management 329–30

    resource price movements 20–1

    resource projects, fiscal regimes 187–225

    resource rent tax (RRT) 33, 241–59;

    • administration 255–7, 258;

    • and cash flow-based rent taxes 63–4; design 247–55;

    • as fiscal instrument 131;

    • and mineral taxation 138–9, 142–3;

    • parameters 254–5;

    • rates 253–4;

    • and tax competition 380

    resource rents 123, 135–6, 138, 191, 244–7

    resource revenue accounting 369–70

    resource revenue transparency 129

    resource revenues 17–19

    resource-rich countries 17–19

    resource stock depletion 25

    resource tax administration 319–36, 340–74;

    • assessment of 373–4;

    • reform 371–4;

    • tax administrators 330–1, 332

    resource tax base 319–22

    resource tax design 13–66

    resource tax legislation 329, 330, 367–8

    resource tax offices 359–60

    resource tax regimes 45–9

    resource tax returns 350, 351

    resource taxation: boom and bust 241–4;

    • low-income countries 75–85;

    • and resource management 329–30;

    • systems 190–203

    retained earnings 382, 383

    revealed preference activity rule 211, 308, 312

    revenue equivalence theorem 41, 292

    revenue management 251, 258

    revenue-raising 40, 190–1, 193, 194, 207–10

    rights of appeal, tax audits 351, 355

    rights to exploit natural resources 40–1, 289

    ring-fencing: and CIT design 43, 394;

    • and integrated natural gas projects 173, 174;

    • oil and gas activities 97–8;

    • of taxes 256

    risk adjusted discount rate (RADR) 194

    risk-averse government 192

    risk-averse owners, natural gas 167

    risk-averse (RA) private investors 135, 136, 137, 138, 140, 144, 193, 246

    risk-free interest rate 36, 138, 139, 144, 196, 383

    risk-free investment 144

    risk-free rate of return 135

    risk-neutral government 192

    risk-neutral (RN) private investors 136, 137, 138, 142, 143, 144

    risk premium 135, 136, 137, 138, 139, 140, 143, 144, 252, 253

    risk service contracts 98–9, 102–4, 112, 117

    risk sharing 51–3, 115–17

    risks: mining sector 123–4;

    • natural gas 166–7

    roles and responsibilities, tax administration 366–8

    ROR systems 100

    routine functions, tax administration 342–8

    royalties 27–31;

    • and asymmetric information 53–6, 63;

    • and auctions 299, 300;

    • and corporate income tax (CIT) 44;

    • and excess profits taxes 80;

    • geared 81–2;

    • gross 95–6;

    • and PSC regimes 99, 100;

    role of 30–1

    royalty rates, minerals 124, 125

    Royalty/Tax Systems 95

    Russia 105–6, 281–2

    S-based cash flow tax 32

    sales taxes 127

    Saudi Arabia 91, 282, 388

    sealed bid 41, 290, 296

    sector ministries 274, 329, 352, 354, 355, 356–7, 367

    sector responsibilities 274

    sector-specific charges 42–3

    sector-specific profit taxes 39

    sectoral tax design 15

    segmented projects, natural gas 167, 168, 173

    self assessment regime 341–2, 353, 367

    semi-autonomous agencies, tax administration 360, 371

    sensitivity analysis 195–6

    sequential auctions 296–7, 302

    service contractors, payments 322, 335–6, 360

    service contracts 98, 99, 102–4

    shadow price 25

    share bidding 300

    signaling, auctions 296, 306

    signaling hypothesis 409

    signature bonuses 42, 82, 97, 101, 106, 299

    simplification: of progressive profits-based tax regime 325–9;

    • of tax administration 330

    simulations, mineral taxation 143–9

    simultaneous ascending auctions 304–5, 312

    simultaneous auctions 296–7, 302

    simultaneous clock auctions 305

    sliding scale, royalty rate 96, 127, 132, 141, 142

    smokescreen hypothesis 409, 420

    smuggling 60

    Snohvit LNG, Norway 173–4

    social optimality 28

    South Africa 129, 249, 374

    sovereign risk 37, 63, 132–3, 140, 141

    special petroleum tax (SPT) 96–7, 109

    special zones 395–6

    specific royalties 29, 132, 142

    specific (volume-based) taxes 320

    spillovers 19

    spot markets 167, 176

    SPs180–1

    stabilization clauses 330

    staff, tax administration 361–3

    standard taxes, resource sector 43–5

    standardized contracts 326

    state commercial participation 322

    state equity 132, 133, 248, 271

    state ownership: gas reserves 165;

    • mining 127, 128, 187;

    • oil 90

    state participation: mining 125, 126, 128;

    • natural resources 263–85;

    • objectives 267–8;

    • policy responses 274–5

    state share of rent 203, 207

    subadditive values, auctions 295

    subcontractors, payments 322, 335–6

    subsidised prices, natural gas 181–2

    substantial rents 15–17

    substitute goods 295

    sunk costs 14–15, 16, 28

    superadditive values, auctions 295

    supplementary bids 310, 311

    supplementary petroleum duty (SPD) 111

    supplementary round, auctions 290, 306, 308, 309, 310, 311, 312

    Suriname 127

    synergies 295

    Tanzania 414–15, 418

    tariffs 24, 44, 179, 180–1

    tax administration see resource tax administration

    tax appeals 355–6

    tax assessment 343–4, 369

    tax audit 349–55, 366, 368

    tax authorities 329, 331, 332, 342–3, 369–71

    tax avoidance 22

    tax base 15, 31–7, 247, 319–22, 379, 380

    tax collection 343–4, 369

    tax competition 23, 60–2, 379–81

    tax creditability considerations 257

    tax credits 37

    tax holidays 242, 413

    tax incentives 96, 379, 380, 387

    tax instruments 27–49

    tax legislation 115, 319, 327, 329, 330

    tax neutral reorganizations 395

    tax policy 319–36

    tax rates 37–9, 105, 108, 138, 247

    tax refunds 36

    tax regimes 15

    tax regulation 359

    tax reliefs 36, 37, 97, 108, 116

    tax repayments 344, 347

    tax returns 350, 351

    tax revenue 17–19, 271

    tax/royalty regime 406, 407

    tax rules 19, 22, 57, 319

    tax (state) share of total benefits 202

    tax sub-regimes, consolidation 326

    tax systems: design 251–2;

    • international considerations 22–3

    tax take 45–6, 105, 106, 108

    tax tribunals 356

    tax underpayment 346, 347

    tax wedges 46, 199

    taxes on profits 249, 250

    technical assistance and resource tax reform 373–4

    technical assistance contracts (TACs) 103

    territorial taxation 384–5, 387

    thin capitalization 391

    threshold rates 38, 138–9, 247

    time consistency: and fiscal stability 407–8;

    • in petroleum taxation 425–42;

    • and resource extraction 77;

    • and resource tax design 15, 56–60, 62, 64–6

    time profile of government revenue 202, 207–10

    Timor-Leste 416–17, 418

    tracts 301

    transfer pricing 43, 60, 170, 172, 173, 183, 388–93

    transparency 129, 275, 291, 293, 368

    treasury account 369

    trigger strategies 430

    two-way bet 417–18

    UK 105, 108, 109, 311

    UK Continental Shelf (UKCS) 92, 106, 108, 110

    UK petroleum fiscal regime 110–12

    uncertainty 19–22, 31, 36, 46, 51, 52

    under-investment 426–7, 429, 430, 431, 436, 437, 441

    understatement of tax 346, 350, 353

    unsustainable benefits, fiscal stability clauses 413–16

    upstream taxation, natural gas 169–74, 183

    uranium prices 20, 21

    US 109, 386

    US Federal Communications Commission (FCC) 307

    US Federal Energy Regulatory Commission (FERC) 179

    US Gulf of Mexico (GoM) 92, 105

    US offshore oil lease auctions 301–2, 311

    US subpart F rules, oil companies 392

    user fees 42

    valuation of oil or mineral resources 348–50

    value chain, natural gas 165–9

    variable costs 15

    variance of government revenue 203

    VAT 44–5, 127, 322, 347, 396–7

    Venezuela 109, 127, 279–80, 299, 303, 314

    WAEMU (West African Economic and Monetary Union) 61

    welfare losses 426, 427

    wildcat tracts 301, 302

    windfall tax, mining 126, 129

    winner’s curse 294, 296

    withholding taxes 22, 127, 322, 335–6, 388

    workers, risks 22

    world capital markets 79

    world prices 22, 24

    worldwide taxation 384–5, 387

    Yemen LNG 173

    Zambia 126, 128, 129, 283–4, 414, 418

    zero-rate CIT on retained earnings 382, 383, 384

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