By Derrick Penner
Vancouver Sun
Separating provincial profits from other operations could be tricky for global giants, accountant says
For potential liquefied-natural-gas producers in British Columbia, separating which of their profits come from activities in the province — versus their foreign operations — for the purposes of B.C.’s new LNG tax could be the biggest issue raised by the levy that was introduced this week, according to one expert.
Draft legislation tabled by Finance Minister Mike de Jong Tuesday calls for a two-tiered levy from income on gas-liquefaction activity in B.C., separate from regular federal or provincial income taxes.
“For foreign proponents who already have robust LNG activities outside of Canada, this is probably the biggest issue with this legislation,” said Byron Beswick, a partner in the tax practice of the accounting and consulting firm EY.
