Ernst & Young tackles tax in downstream sector

Accounting firm, Ernst & Young, will be hosting a tax seminar to examine the country’s existing tax structure and the opportunities and implications for investors in the downstream sector. The Government’s current policy aimed at increasing investment in the downstream energy sector is generating tremendous interest among both local and foreign investors, the company said, noting that the country’s tax system plays a major part in evaluating the attractiveness of this sector. The seminar takes place on December 1, 2004 at the Trinidad Hilton and Conference Centre, beginning at 7.30 am.

Presenters include leading local energy consultant, Trevor Boopsingh and US-based Ernst & Young international tax specialist, Phil Rogers who will provide the perspective of potential foreign investors. They will be joined by some of Ernst & Young Caribbean’s leading tax advisers, Wade George, Nicole Lawrence and Gregory Hannays. According to Ernst & Young Caribbean’s Regional Tax Leader, Wade George, an unprecedented level of investor interest in the downstream sector currently exists due to the escalation of commodity prices together with renewed State interest. He says: “Investors — both current and potential — need to have a clear understanding of the existing tax measures in order to capitalise fully on the available opportunities.”

Ernst & Young Caribbean Tax Partner, Nicole Lawrence, agrees, stating that “the largest emphasis on the local downstream energy sector is generating a lot of investor interest and the existing tax system provides favourable measures that can enhance investment returns.” “Even amidst the calls for tax reform coming from certain quarters, many current and potential investors are still not entirely aware of the full range of measures that should be influencing their investment decision, and as a result, could be foregoing opportunities. This seminar is geared towards filling in those gaps.” Apart from a general commercial overview of the history and direction of the downstream energy sector, the seminar will look at available tax incentives, tax effective ownership as well as financing arrangements, and indirect tax issues. Tax issues specific to US investors will also be addressed.