This paper looks at the tax implications for your clients who are junior explorers. The paper provides an overview of general considerations together with an in-depth look at the issues facing such companies as they expand overseas.
The paper covers:
- Part I: General considerations
- deductibility of exploration costs
- impact of capital raisings
- employment tax issues (shares and options issued to employees and directors)
- implications of farm-ins and farm-outs
- Part II: Offshore expansion
- structuring offshore exploration activity
- deductibility of head office costs
- treatment of funding offshore activities
- Part III: Resource Taxes
- overview of the MRRT and PRRT regimes
- implications for junior explorers.