Vermilion Energy Inc T.VET

Windfall tax

[galaxyr]

Will VET, not be able to reduce its 2022 Irish taxes from the Corrib Sea by deducting the $500 million purchase price from its acquisition from Equinor and or use it's over $400 million in tax pools from the Corrib? Why would VET have to pay a windfall tax on earnings outside the EU? It's a Canadian listed company. I have a hard time thinking they have to pay additional taxes on Australian Brent oil earnings or north american earnings to the EU. Or am I missing something?

[mnztr]

hopefully they can set up a trading arm and sell the gas to that trading arm and declare income in Canada. 

[stockmarket1]

Even though VET is a Canadian company. My understanding is any company that holds a footprint any parts of Europe, would be part of it.

[Overertune]

So EU wants to tax US and Canadian oil/gas companies for all their revenues?  Isn't that a joke?

[Carlo2021]

galaxyr wrote: Will VET, not be able to reduce its 2022 Irish taxes from the Corrib Sea by deducting the $500 million purchase price from its acquisition from Equinor and or use it's over $400 million in tax pools from the Corrib? Why would VET have to pay a windfall tax on earnings outside the EU? It's a Canadian listed company. I have a hard time thinking they have to pay additional

[Quintessential1]

The same way they have to pay royalties to the EU via Ireland. I am sure they will make use of any tax pools and write offs that they are allowed including possibly reinvesting capital, (this tax year), to reduce taxable revenue.  That is what the accountants are for. However, if the EU passes this windfall tax they can and will impose it on VET and it probaby will eat into shareholder

[Overertune]

If windfall tax only applies to Europe revenues, who is going to sell to them next year?  Let these idiots live in the dark.

[prested]

The Europeans, like governments everywhere, thnk they can do a lot of things which reality proves they cannot. Don't assume that because they were able to agree over Ukraine (to even their own surprise) that they will be able to come to any agreement about how this ill thought out propsal could be anything except a total abortion.  Remember, unlike Ukraine, they will not have America on

[Moemoney42]

I think the tax could get a bit of opposition as well.. might not be a guaranteed thing.. I'm sure the industry will be at the table with a reality check.. will it be understood.. who knows..?? 

[EnergyWatcher55]

VET operates in Ireland and would be subject to Ireland's taxes. Its that simple. 

[Quintessential1]

You don't think that Ireland is part of the EU?

[Overertune]

Whatever taxes they want, they have to tell the company ahead of time and let the company decide whether they want to provide services.  You can just ate the food and then tell them it should be free?! tax can't go backwards. Even third world countries don't do that.  I can't imagine eu is coming up with this.  No wonder their economy is all messed up.

[Abedim15]

Unfortunately in this case I believe you are incorrect. They will in fact tax "excess" profits for the entire year of 2022 regardless of the fact that the decree won't be introduced until September 30th. Vermillion will be making lots of money nonetheless 

[stockmarket1]

And they'll end up paying a lot due too.

[Moemoney42]

If the tax is introduced for 2022 they will have the Corribe acquisition to counter those profits.. as previously mentioned by someone here.. Europe would be foolish to impose a "windfall tax" on a sector they need to have invest in production desperately.. I'm sure the industry players in Europe will table this fact and pose it this way.. if you want to be reliant on outside

[Oldnagger]

I am not sure how things will play out for 2022. After all VET had significant hedges on their own production of nat gas in Europe . The other 36.5% of Corrib being purchased from Equinor belongs to VET in the sense that the income snce Jan 1 is being deducted from the settlement price , yet who is the taxable entity ?

[TVR]

The taxable entity is Equinor Ireland which is what VET is buying.  Therefore they inherit any tax liability in Equinor Ireland.  However, if any WPT is based on taxable income as per the EU announcement, the accumulated unused tax loss carry forward should shelter VET from regular and windfall taxes for a few years.