Disclosure of tax waivers vital for transparency in extractive industry - UK-based consulting firm

Disclosure of tax waivers vital for transparency in extractive industry – UK-based consulting firm

Feb 13, 2019 News

Disclosure of tax waivers is an essential part of the transparency process for the extractive sectors, officials attached to United Kingdom (UK)-based consulting firm, Binder Dijker Otte (BDO) said yesterday during a workshop aimed at strengthening Guyana’s data collection and accountability mechanism.
The firm is assisting the Government of Guyana to implement its Extractive Industries Transparency Initiative (EITI).
Guided by the belief that a country’s natural resources belong to its citizens, the EITI has established a standard to promote the open and accountable management of oil, gas and mineral resources.
The EITI Standard requires countries to publish timely and accurate information on key aspects of their natural resource management, including how licences are allocated, how much tax, royalties and social contributions companies are paying, and where this money ends up in the government at the national and local level.
Governments, together with companies and civil society, work to improve the management of natural resources by implementing the EITI Standard.
As such, while addressing issues of data collection and methodology, workshop facilitator and independent administrator of BDO LLP, Rached Maalej noted that oil companies will be asked to authorise the Guyana Revenue Authority (GRA) to release confidential tax information.
He noted that the release of tax waiver information is an essential step to compiling Guyana’s first EITI report.
Maalej noted that all companies are required to disclose the same information – same rules for all companies. Companies also benefit from an improved and more stable investment climate, in which they can more effectively engage with citizens and civil society.
The GRA, Guyana Geology and Mines Commission (GGMC), Guyana Gold Board, Ministry of Finance, National Insurance Scheme and the Environmental Protection Agency, as well as nine oil and gas, and 25 mining companies will be required to submit information.Maleej said that while GRA is legally bound to withhold taxpayer information from third parties, private sector entities can give authorization to share information on consolidated revenues and expenditures.
Like in the UK and other countries, he said government could ask the local companies to grant waivers for the GRA to release their tax information and identities.
“For the major players, we can obtain a waiver. We can try to contact them and try to get a no-objection signature.”
EITI seeks to strengthen public and corporate governance, promote understanding of natural resource management, and provide data to inform and drive reforms to curb corruption and improve accountability.
As such, the Government of Guyana identified the Ministry of Natural Resources as the lead agency responsible for implementing the Guyana-EITI. Minister of Natural Resources, Raphael Trotman was identified as GYEITI Champion to lead the implementation.
To achieve this objective, the Government of Guyana, through Minister Trotman, had invited implementing agencies to draft the EITI Standard and systems which will help with improved tax collection and budgetary planning.
Trotman had noted that EITI signals commitment to the transparent and accountable management of the country’s natural resources. He said that a transparent and open government enhances citizens’ trust.

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Disclosure of tax waivers vital for transparency in extractive industry – UK-based consulting firm

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