No corporate tax was payable on the 2018 profit because of the very significant tax losses that exist in the business. “These losses transferred to Nephin when Nephin bought Shell’s stake last year,” the spokesman said. “The consideration paid for the business would have factored in these losses.”
Minister Ray Burke (later jailed for corruption) changed the law in 1987, reducing the State’s share in our offshore oil and gas from 50% to zero and abolishing royalties. In 1992, Minister Bertie Ahern reduced the tax rate for the profits made from the sale of these resources from 50% to 25%.
According to respected economist Colm Rapple, the amount of tax paid will be very low and will not be paid until many years into the operation of a gas or oil field, because the deal allows the companies to write off 100% of costs (even the anticipated cost of shutting down the operation!) before they declare the profits to be taxed. In major oil/gas producing countries, the state takes an average (median) of 68% of the value of gas and oil.
OK thanks. I'll look into it some more.