
TY  - JOUR
A1  - Wells, B. E. 
T1  - VENTURING ABROAD&#x2014;SETTING UP OPERATIONS OVERSEAS
JF  - The APPEA Journal
JO  - The APPEA Journal
Y1  - 1994
VL  - 34
IS  - 1
SP  - 882
EP  - 886
KW  - 
UR  - https://doi.org/10.1071/AJ93069 
N2  - This paper provides a brief insight into the fiscal regimes for international exploration and production,covering some of the management problems, mostly from a financial perspective, that are faced in setting up operations overseas.Any move overseas means another set of local regulations to understand and plan for. Difficulties of language, culture and regulatory structure need to be faced. There must be a high level of understanding of local conditions and selection of staff with local knowledge, well trained and honest with the backup of an established system of internal controls and audit.The organisational structure of the tax planning and compliance functions should be considered. Functions controlled by head office will be most effective when operating activities are low. Progressing to a larger scale of activity may demand daily involvement in tax matters and require local experience.Countries impose, to varying degrees, exchange control regulations. These can inhibit the flow of funds back to the parent company, minimising immediate benefits from the project unless there are re-investment opportunities within the country. Restrictions on the repatriation of funds may serve to increase home country borrowing requirements&#x2014;if the regulations require the conversion of surplus funds to local currency, a foreign exchange risk exposure is created and has to be managed.Wherever the international involvement leads us there is one over-riding aim, to obtain a return on investment commensurate with the risk. Everything else which impinges on that rate of return, whether it relates to tax changes, contract terms or exchange control regulations, must be compensated for or resisted to maintain the rate of return. 
ER  -

