change in tax legislation in Trinidad Does anyone know if the change in tax lesgislation in Trinidad that Touchstone just annonce also apply to the block that Parex has in Trinidad ?
Quote: [ The key changes to the fiscal regime currently affecting Touchstone are as follows:
| | | Current | | Revised (effective January 2014) |
| | | | | |
| Investment tax credit | | • Tax credit of 20% on capital expenditures
• Tax credit can only be used in the year incurred | | • Unchanged
• Unused credits can be rolled forward for one year |
| | | | | |
| Capital allowances | | Exploration | | |
| | | • Initial allowance of 10%
• Annual allowance 20% reducing balance | | • 100% of cost to be written off in year incurred |
| | | | | |
| | | Development | | |
| | | • Intangible expenditures | | • Intangible and tangible expenditures |
| | • Initial allowance 10% | |
| | • Annual allowance 20% reducing balance | |
| • Tangible expenditures | | • 50% year 1 |
| | • Initial allowance 20% | | • 30% year 2 |
| | • Annual allowance 20% straight line | | • 20% year 3 |
| | | | | |
| | | Workovers & Qualifying Sidetracks | | |
| | | • Deduction of intangible costs incurred | | • 100% deduction of all costs incurred |
Source:https://www.finance.gov.tt/content/Budget-Statement-2014.pdf
Touchstone, through its operating subsidiaries in Trinidad, will greatly benefit from these significant changes as it continues to be very active on both the drilling and recompletion aspects of its capital program. The Company will directly reinvest the additional funds generated by the tax savings to accelerate the capital program in 2014-2015.
Mr. Scott Budau, CFO of Touchstone said, "These changes are making Trinidad much more competitive from a capital markets prospective and we anticipate it will fuel additional activity in the country for both ourselves and others companies."]