Looking ahead – a snapshot of innovations in resource taxation, cost transparency and revenue forecasting - Shared screen with speaker view
For more information, see the Future of Resource Taxation Roadmap in English, French and Spanish. https://www.iisd.org/system/files/2020-10/future-resource-taxation-roadmap.pdf
Future of Resource Taxation video: https://www.youtube.com/watch?v=5Xk32WqROyM
English speaking participants, please choose the English channel by clicking on the globe symbol.
Regular (and timely) audit of costs is an essential part of cost control, as Mr Okoko notes, and this was a key highlight of Oxfam's research, available here in English and French: https://www.oxfam.org/en/research/examining-crude-details
Thank you Daniel !
Moreover, the costs of disclosure should not be viewed independently of the benefits of disclosure, which if done well, will exceed costs of disclosure.
Ma. Teresa Habitan
In the Philippines where we are in the process of proposing legislation to revise the fiscal regime for mining (still largely based on the FARI model), we want to introduce a ring fencing provision to prevent companies from shifting costs across projects to lower the profit base. Are there any ways to improve or strengthen such a provision?
Hi everyone, greeting from Jakarta. Cost transparency and data availability are critical for government revenue and benefit sharing for the community, please see more our policy study in Indonesia’s PSC cost recovery model and its finding in here https://pwypindonesia.org/en/policy-brief-liftng-cost-recovery-and-performance-of-oil-gas-non-tax-revenue/
Thanks Daniel. Great answer. The real challenge is BO design and implementation in a systematic way. Those interested can find more here. https://bo6.global
@Rudy -- I suspect Johnny and other colleagues will discuss in more detail, but the IMF FARI model is one example of a public model, and organizations like OpenOil, Oxfam, NRGI, and CCSI and other orgs often publish financial models as well. Public models are certainly the way to go where possible.@Maryati -- thank you for highlighting the excellent work of PWYP Indonesia on this!! Definitely worth learning from.@Ma. Teresa Habitan -- Happy to discuss ringfencing, which we touch on slightly in our report (see link shared above). Feel free to contact me at: email@example.com@Tim -- fully agree. Thank you for sharing this link with everyone.
Another important aspect is the sale of government share of commodities by state owned enterprises. Had the pleasure of delivering a pilot on commodity trading transparency for Ghana (GNPC), which can be found here. https://eiti.org/document/report-on-ghana-eiti-oil-gas-commodity-trading-pilot
Three points of comments from PWYP-Mongolia, for the previous session: 1) For any meaningful EI project-cost reporting and audit, the country requires a capacity for either national auditing authority or domestic audit companies; 2) the governments are still reluctant to comply with the EITI standard on open contracting, particularly on a petroleum product-sharing details, citing that other company is non-EITI member; 3) many multinational EI (eg. Rio-Tinto, etc.) play a double-standards in enforcing the EITI standards + incorporation country legislation vis-à-vis the operating country national legislation, including on taxation cost shifting by an intermediate subsidiaries tax-haven or offshore or registering the EI management company in a double-taxation avoidance agreement signed countries. More on Mongolia case, from less 40 contracts made open to more than 801, just in one year between 2019-2020, see: www.resourcecontracts.mn. Thanks, Tur-Od
@Tur-Od, great points on Mongolia, and it's useful to understand these challenges. Thanks for sharing.
Happy to talk further about issues of tax transparency, mining tax policy or beneficial ownership. Tim.firstname.lastname@example.org
One key point from PWYP-Mongolia on the EITI space modeling, incl. BO in particular, and on EITI standard mainstreaming in general: Without any stand-alone National Law on EI or Extractives Sector Transparency, as well as its designated/institutional enforcement, a full-fledged transparency in either Open Contracting or Beneficial Ownership is impossible. This case for domestic legislative obstacles applies also to EITI Standard (2019) on Protocol: a Civil Society Participation! PS: Norway's case is still unique...Thanks, Tur-Od
Thank you all for the excellent interventions and questions! Have a good weekend.
Merci à tous!
Many thanks and warm wishes from PWYP-Mongolia!!