BP uses taxation tricks on T&T, must pay back $1B

May 17, 2018 News

TT’s Prime Minister, Dr. Keith Rowley

The Government of Trinidad and Tobago has been able to get British Petroleum (BP), the largest natural gas operator within its shores, to pay TT$1 billion (US$150M) it owes the state in outstanding claims.
An agreement to this effect was signed on April 30, last, between TT’s Prime Minister, Dr. Keith Rowley and BP’s senior Executives.
The pact clearly states that the energy giant will repay the CARICOM member state “upwards of $1 billion” as a means of compensation for the accounting techniques it used to keep rightful revenue away from TT’s national purse.
The company also agreed to pay premium royalties from 2018 to 2020, even though it is not legally obligated to for that period.
Rowley said, “Once you are extracting our heritage, you have to pay the royalty.”
This would mark the second time that BP was caught using taxation tricks against T&T. In 2011, former Prime Minister Kamla Persad- Bissessar was able to get BP to pay the Government over TT$1 billion in back taxes.
BP was praised for “exercising its good conscience” as the Persad-Bissessar-led government had noted that “other oil companies would not have been as cooperative and just.”
She had also praised BP for “honouring its commitment to return to the table whenever corporate tax issues” were detected.
Considering the aforementioned, concerned Guyanese have wondered if the Government of Guyana would be able to defend the State in a similar fashion, should ExxonMobil be caught in a similar position.

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