Back Matter

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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