Taxing Canada’s Cash Cow: Tax and Royalty Burdens on Oil and Gas Investments
This paper addresses in depth the impact of both corporate taxes and royalties on the decision to invest in the oil and gas sector for British Columbia, Alberta, Saskatchewan, Nova Scotia and Newfoundland & Labrador and in comparison to Texas. Similar to Chen and Mintz (2009), we estimate the ma...
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ftdoajarticles:oai:doaj.org/article:26a30a6c9fd44094b1f46762d91c6ec4 2023-05-15T17:21:07+02:00 Taxing Canada’s Cash Cow: Tax and Royalty Burdens on Oil and Gas Investments Jack M. Mintz Duanjie Chen 2010-02-01T00:00:00Z https://doi.org/10.11575/sppp.v3i0.42330 https://doaj.org/article/26a30a6c9fd44094b1f46762d91c6ec4 EN eng University of Calgary https://journalhosting.ucalgary.ca/index.php/sppp/article/view/42330 https://doaj.org/toc/2560-8312 https://doaj.org/toc/2560-8320 doi:10.11575/sppp.v3i0.42330 2560-8312 2560-8320 https://doaj.org/article/26a30a6c9fd44094b1f46762d91c6ec4 The School of Public Policy Publications, Vol 3 (2010) Political institutions and public administration (General) JF20-2112 article 2010 ftdoajarticles https://doi.org/10.11575/sppp.v3i0.42330 2022-12-31T04:11:39Z This paper addresses in depth the impact of both corporate taxes and royalties on the decision to invest in the oil and gas sector for British Columbia, Alberta, Saskatchewan, Nova Scotia and Newfoundland & Labrador and in comparison to Texas. Similar to Chen and Mintz (2009), we estimate the marginal effective tax rate on capital for the oil and gas sector, comparable to other sectors in the economy. In our assessment, we include federal and provincial corporate income taxes, sales taxes on capital purchases and other capital-related taxes in our assessment such as severance taxes and royalties. Except for oil and gas investments in Nova Scotia and Newfoundland & Labrador offshore developments, oil and gas investments bear a higher tax burden compared to other industries in Canada. In other words, oil and gas investments are generally not “subsidized” but bear a higher level of taxes and royalties on investment compared to other industries. Article in Journal/Newspaper Newfoundland Directory of Open Access Journals: DOAJ Articles British Columbia ENVELOPE(-125.003,-125.003,54.000,54.000) Canada Newfoundland |
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Open Polar |
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Directory of Open Access Journals: DOAJ Articles |
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ftdoajarticles |
language |
English |
topic |
Political institutions and public administration (General) JF20-2112 |
spellingShingle |
Political institutions and public administration (General) JF20-2112 Jack M. Mintz Duanjie Chen Taxing Canada’s Cash Cow: Tax and Royalty Burdens on Oil and Gas Investments |
topic_facet |
Political institutions and public administration (General) JF20-2112 |
description |
This paper addresses in depth the impact of both corporate taxes and royalties on the decision to invest in the oil and gas sector for British Columbia, Alberta, Saskatchewan, Nova Scotia and Newfoundland & Labrador and in comparison to Texas. Similar to Chen and Mintz (2009), we estimate the marginal effective tax rate on capital for the oil and gas sector, comparable to other sectors in the economy. In our assessment, we include federal and provincial corporate income taxes, sales taxes on capital purchases and other capital-related taxes in our assessment such as severance taxes and royalties. Except for oil and gas investments in Nova Scotia and Newfoundland & Labrador offshore developments, oil and gas investments bear a higher tax burden compared to other industries in Canada. In other words, oil and gas investments are generally not “subsidized” but bear a higher level of taxes and royalties on investment compared to other industries. |
format |
Article in Journal/Newspaper |
author |
Jack M. Mintz Duanjie Chen |
author_facet |
Jack M. Mintz Duanjie Chen |
author_sort |
Jack M. Mintz |
title |
Taxing Canada’s Cash Cow: Tax and Royalty Burdens on Oil and Gas Investments |
title_short |
Taxing Canada’s Cash Cow: Tax and Royalty Burdens on Oil and Gas Investments |
title_full |
Taxing Canada’s Cash Cow: Tax and Royalty Burdens on Oil and Gas Investments |
title_fullStr |
Taxing Canada’s Cash Cow: Tax and Royalty Burdens on Oil and Gas Investments |
title_full_unstemmed |
Taxing Canada’s Cash Cow: Tax and Royalty Burdens on Oil and Gas Investments |
title_sort |
taxing canada’s cash cow: tax and royalty burdens on oil and gas investments |
publisher |
University of Calgary |
publishDate |
2010 |
url |
https://doi.org/10.11575/sppp.v3i0.42330 https://doaj.org/article/26a30a6c9fd44094b1f46762d91c6ec4 |
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ENVELOPE(-125.003,-125.003,54.000,54.000) |
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British Columbia Canada Newfoundland |
geographic_facet |
British Columbia Canada Newfoundland |
genre |
Newfoundland |
genre_facet |
Newfoundland |
op_source |
The School of Public Policy Publications, Vol 3 (2010) |
op_relation |
https://journalhosting.ucalgary.ca/index.php/sppp/article/view/42330 https://doaj.org/toc/2560-8312 https://doaj.org/toc/2560-8320 doi:10.11575/sppp.v3i0.42330 2560-8312 2560-8320 https://doaj.org/article/26a30a6c9fd44094b1f46762d91c6ec4 |
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https://doi.org/10.11575/sppp.v3i0.42330 |
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