A UN subcommittee is seeking stakeholder comment on a package of draft recommendations designed to assist developing countries formulate policy, craft tax laws, and negotiate tax treaties to meet their objectives in taxing the extractive industry.
In a November 18 notice on the UN website, the Eric Mensah, coordinator the UN committee of expert’s subcommittee on extractive industry taxation, put out a call for comments by February 16 on the first five drafts of the committee. The documents were originally released on October 25 along with draft updates to the UN model tax convention.
Included is a paper addressing the pros and cons of taxing extractive industry capital gains and indirect sales of capital assets, and describing the legal mechanisms needed to accomplish the objectives selected.
Another paper offers recommendations on tax treaty negotiation and discusses the differences between how UN and OECD model tax treaty provisions operate with respect to taxation of the extractive industry.
Also included is a paper that highlights tax and legal issues associated with decommissioning and a paper that outlines issues to be considered in imposing VAT on extractive industry operations.
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