XPost: can.politics, bc.politics, van.general   
   XPost: vic.general, nanaimo.general   
   From: Panca@nyet.ca   
      
   'To give them time to really dig up the province'.   
      
   Most every Canadian - with a real tax rate of about 40% - will be so pleased   
   for the natural gas industry.   
   Give 'em a break, for pete's sake . . .  these guys aren't likely to make an   
   outrageous profit from our land, are they?   
   ___________________________________   
   Tue Oct 21, 2014  - ca.reuters.com   
      
      
   British Columbia sets new LNG income tax at 3.5 percent   
      
      
   VICTORIA B.C. (Reuters) - British Columbia unveiled its long-awaited liquefied   
   natural gas tax legislation on Tuesday, setting out a preliminary top rate of   
   3.5 percent, which the Canadian province said adds up to the most competitive   
   total tax regime of any Western jurisdiction.   
      
   The new tax, which applies to income from the liquefaction of natural gas, will   
   rise to 5 percent in 2037, giving the nascent industry a two decade break   
   period to establish itself in the Pacific Coast province.   
      
   At 3.5 percent, the top rate is half the 7 percent proposed by the province   
   earlier this year.  Industry had criticized that rate as too high, saying it   
   could jeopardize the   
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   viability of LNG export facilities planned for the province.   
      
   "We have been aware, from the outset, that we are being analyzed on a   
   comparative basis with other jurisdictions," British Columbia Finance Minister   
   Michael de Jong told reporters.  "We believe, based on the analysis we've done   
   ... that we represent the single most cost-competitive jurisdiction within   
   which these proponents can establish themselves."   
      
   The province's analysis is based on Canada's total tax regime, including other   
   levies from all levels of government, royalties, carbon taxes and fees,   
   compared with the total taxation regimes in Australia and the United States.   
      
   The tax details should provide some much needed clarity for companies such as   
   Malaysia's Petronas [PETR.UL], which warned earlier this month it could delay   
   its $11 billion project by more than a decade unless a favorable tax deal was   
   reached.   
      
   A spokesman for the state-owned company's Canadian project said it continues to   
   review the details of the new tax.   
      
   LNG Canada, a Royal Dutch Shell led consortium, was more overtly positive on   
   the tax legislation, calling it an "important step forward in providing the   
   certainty that companies need" in a statement.   
      
   More than a dozen LNG terminals are proposed for British Columbia's rugged   
   coastline, with major players including Petronas, Shell and Chevron all racing   
   to build capacity to ship Canadian gas to Asian markets.   
      
   None of the projects have board approval, with the details of the LNG tax often   
   cited as a hurdle to overcome for those multibillion-dollar investments. The   
   Canadian projects are also facing fierce competition from new developments in   
   Australia and the United States, which are more established jurisdictions.   
      
   The two-tier tax will apply at a lower rate of 1.5 percent at the start of   
   operations until proponents recoup capital costs and initial net operating   
   losses.   
      
   The province also introduced a new corporate tax credit for companies that have   
   corporate offices in British Columbia, which will help offset the LNG tax.   
      
   De Jong said it the lower tax rate reflects a decline in LNG pricing forecasts   
   and reduced demand from key markets in China and Japan.   
      
   "There's no question the market has changed," he said. "But we're still in a   
   range where this is viable and potentially lucrative for all that are   
   involved."   
      
   The legislation is expected to pass before the end of November.   
      
   --- SoupGate-Win32 v1.05   
    * Origin: you cannot sedate... all the things you hate (1:229/2)