RE:the future for bankers hinges on the results of the auditDb you're absolutely correct. This has now turned into a Ripley's Believe It or Not scenario.
If you can't use your Exploration, Development, and Recovery costs as tax exemptions what's the use in going into business it in the first place?
.
A Government operating this way ensures that the oil will simply stay in the ground. It's so basic it flies in the face of simple logic, yet here we are..
.
Now thinking that the possibility that the company is wrong and they owe this money would be normal in this situation simply because we want to be open minded and look at all posibilities but I just can't, it defies all logic.
Someone please explain how a company spends let's say
.
10 million dollars on Exploration, Development, and Production of Oil, then they sell it for
15 million, first they pay
1 million in Royalties and another
1 million in Excise taxes.
Leaving 3 million in actual profit......
then they reinvest that profit expanding the operation to find more oil...... meaning there is
no money left, all funds have been reinvested ...... How can the Government want their 50% of the 3 million, or even the 15 million , just doesn't wash....
Either the Albanian Finance Department are not using trained accountants/auditors and they know not what they do, or they simply don;t care they want their 50% of profit BEFORE it's reinvested which is so unfantonable to consider.
We live in different times I must say....