Falklands’ considering easing capital gains tax for oil and gas industry

Thursday, July 5th 2012 - 07:30 UTC

Full article 40 comments

The logistics and back-up site in Stanley for the oil and gas industry

The Falkland Islands government is considering tax legislation that will help to further promote the oil and gas industry activities by granting more time for the capital gains effective presentation.

In its latest meeting the Executive Council was presented with a paper proposing an extra statutory concession covering capital gains in the oil and gas industry.

“The effect of our present legislation means that any monies paid by a “buy in partner” would be treated as a capital gain and taxed as such and could mean that a company could actually be bankrupt before the proceeds of extracted hydrocarbons started to come back into the company”, said the Exco release.

The effect of this Extra Statutory Concession is that “we will put the capital gains tax portion on any monies received as the result of a buy in on ice for five years or until monies are received from the sales of extracted hydrocarbons, whichever happens the soonest”.

The government points out that this is not waiving any taxes that are due, but giving companies a period of time to have revenues coming in before the Falklands’ government starts looking for them to pay the capital gains tax.

Categories: Economy, Politics, Falkland Islands.

Tags: Extra Statutory Concession, Falkland Islands, Falklands oil and gas industry, FIG.

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Beef
Sounds like a production farm-in is imminent.
Jul 05th, 2012 - 08:09 am 0
Doveoverdover
It doesn't inspire much confidence that this has only surfaced after one of the five have actually secured a farm-in. It's also bad news for Falkland Holdings in as much as Government infrastructure aspirations may need to be delayed. Still, it's got to be the right thing to do and is a welcome sign that things are moving on in a clandestine manner.
Jul 05th, 2012 - 08:47 am 0
Viscount Falkland
The Falklands tax regime is stunningly complex and stupid. This is just a small glimmer of hope at the end of a very long tunnel. Exco should quickly take on board that the way to get most tax is to make it a fair and clear system. At the moment ,everyone in and dealing with the Falklands are finding ways to avoid any tax. Most of the changes in the last few years have been totally unnessecary and no politician is brave enough to break away from the flock at Gilbert house and speak out.No one understands what it takes to attract entrepeneurs and tax them simply and fairly.
Jul 05th, 2012 - 09:50 am 0

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