Getting the message across—taxation contribution of the petroleum industry in Australia
Carlo Franchina A , Rod Henderson A and Praneel Nand AKPMG.
The APPEA Journal 55(2) 432-432 https://doi.org/10.1071/AJ14067
Published: 2015
Abstract
With the global move towards tax transparency reporting measures, resource companies face challenges in ensuring that reporting captures the full extent of revenues contributed by resource companies and also correctly reports the project and profitability life cycles of resource companies.
This extended abstract focuses on the global tax transparency debate and highlights the challenges for large Australian and global oil and gas businesses in demonstrating their payment of their fair share of tax and contributing to the communities in which they operate. Issues to be covered include:
A summary of the revenue contribution of oil and gas companies in Australia through the layers of taxation, such as state royalties, the Petroleum Resource Rent Tax (PRRT) and corporate income taxes.
Highlighting the types and rates of taxes paid by Australian oil and gas companies compared to other selected countries.
A comparison of the concessions granted to Australian oil and gas companies to other countries.
A historical summary of taxes paid by Australian oil and gas companies.
A summary of existing and developing transparency reporting, such as the Australian Taxation Office (ATO) reporting of taxpayers with revenues more than A$100 million, the Extractive Industries Transparency Initiative, Dodd Frank rules, OECD country-by-country reporting and BEPS developments.
Recommendations to get the message across; that is, what should be the common ground on reporting the actual overall global tax liability including income tax, resource taxes, employment taxes and indirect taxes.
Carlo Franchina is the national tax lead partner of Energy and Natural Resources at KPMG. Carlo has 25 years’ corporate tax experience in Australia and the UK. He has extensive experience in advising on income tax, capital gains tax and resource tax matters affecting the energy and natural resources industry in Australia. Carlo has specialist experience in advising foreign companies investing in oil and gas projects in Australia, including the provision of international tax structuring advice. Carlo has a bachelor’s degree in commerce from the University of Western Australia. Member: Institute of Chartered Accountants (ICA),Taxation Institute of Australia (TIA). |
Rod has more than 28 years of experience assisting a range of Australian and global upstream and downstream oil and gas companies, including tax advice on the structuring of major acquisitions and disposals. Rod has spoken at many APPEA conferences on a range of tax issues. He has also assisted companies and industries consult with the Government on new tax proposals, and has appeared before the Senate Economics Committee to make submissions on tax reforms. As KPMG’s Asia Pacific Regional Tax Leader for ENR, Rod has recently presented to an Oil & Gas Tax Symposium in Beijing and KPMG’s Tax Summit in Singapore, discussing the impact of tax reforms on the industry. |
Praneel Nand is a tax director with KPMG’s Melbourne office and has 11 years’ of corporate tax experience in Australia and four years in Fiji. He has extensive corporate tax advisory experience across several industries, including mining, manufacturing, services, pharmaceuticals and consumer products. Praneel also has extensive experience with the provision of international tax structuring advice for inbound and outbound Chinese investors, working closely with the KPMG China practice. Praneel has a bachelor’s degree in commerce and administration from the Victoria University of Wellington. Member: Institute of Chartered Accountants Australia (ICAA). |
