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Australia Mulls Changes to Resource Taxation

Wednesday, March 3, 2010

During a recent speech to the Sydney Institute, Martin Ferguson, Australia’s Minister for Resources and Energy, while stressing that the government still welcomes investment in the country’s resources sector, suggested that there will be changes to the sector’s taxation regime.

Following on from the Henry review of the tax system, which the government has yet to release, he said that “some companies are concerned about what the government’s response will be” and recognized the effect that this might be having at present on investment confidence.

It has been reported that the Henry review has recommended that the 40% petroleum resource rent tax, which is presently imposed on Australia’s offshore oil and gas industry, should be extended across the whole of the country’s mining sector, in replacement of the current state mining royalties, which vary between 2% and 10% of mining company revenues.

Such a rise in taxation would obviously shrink the present and future net profitability of mining in Australia. The Minerals Council of Australia recently said that: “Any proposal that mining should be taxed at the same rate as oil and gas would represent a significant tax increase that would make Australian mining operations among the most highly taxed in the world and seriously damage the competitiveness of Australian projects.” It called the suggestion a “tax grab”.

For his part, Ferguson reminded the resources industry that, while taxation arrangements do change, sometimes in reply to requests from industry itself, it should remember that “over the course of the last two decades, under both Labour and Coalition governments, Australian industry has benefited significantly from business tax reform.”

He expressed his confidence that the government would “deliver taxation reform that is in the best interests of the nation and modernized to deal with the new challenges and opportunities of the 21st century.”

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Offshore Trusts Guide: Introduction

The History of Offshore Trusts
Development of Professional Competence in the Jurisdictions
What Future for the Trust?
The New Age of Transparency
The Swiss Association of Trust Companies
The Society of Trusts and Estates Practitioners

Offshore Trusts Guide: Jurisdictions

Bahamas

Bahamas: Legal Framework and Formation Rules and Fees
Bahamas: 2006 Private Trust Companies Legislation

Barbados

Barbados: Legal Framework and Formation Rules and Fees
Barbados: Supervisory and Licensing Regime and Fees

Bermuda

Bermuda: Legal Framework and Formation Rules and Fees
Bermuda: Supervisory and Licensing Regime and Fees

British Virgin Islands

British Virgin Islands: Legal Framework and Formation Rules and Fees
British Virgin Islands: Special Trusts Act 2003
British Virgin Islands: The Trustee Act 2003
British Virgin Islands: :Supervisory and Licensing Regime and Fees
British Virgin Islands: New Laws on Private Trust Companies
British Virgin Islands: New Private Trust Company Regulations

Cayman Islands

Cayman Islands: Legal Framework and Formation Rules and Fees
Cayman Islands: Supervisory and Licensing Regime and Fees

Cook Islands

Cook Islands: Legal Framework and Formation Rules and Fees
Cook Islands: Supervisory and Licensing Regime and Fees

Cyprus

Cyprus: Legal Framework and Formation Rules and Fees
Cyprus: Supervision, Licensing and Tax

Gibraltar

Gibraltar: Legal Framework and Formation Rules and Fees
Gibraltar: Legislation, Regulation and Supervision

Guernsey

Guernsey: Legal Framework and Formation Rules and Fees
Guernsey: Trusts Law 2007

Isle of Man

Isle of Man: Legal Framework and Formation Rules and Fees
Isle of Man: Supervisory and Licensing Regime
Isle of Man: Uses Clients and Tax Treatment

Jersey

Jersey: Legal Framework and Formation Rules and Fees
Jersey: Supervisory and Licensing Regime
Jersey: Trusts Amendment Act 2006
Jersey: Foundations

Liechtenstein

Liechtenstein: Legal Framework and Formation Rules and Fees
Liechtenstein: Regulation Supervision and Transparency
Liechtenstein: Characteristics of Liechtenstein Trusts
Liechtenstein: Foundations

Madeira

Madeira: Legal Framework and Formation Rules and Fees

Malta

Malta: Legal Framework and Formation Rules and Fees
Malta: The Trust and Trustees Act 2004

Mauritius

Mauritius: Legal Framework and Formation Rules and Fees
Mauritius: Characteristics of the 2001 Trusts Act
Mauritius: Additional Provisions of the 2001 Trusts Act
Mauritius: Tax Treatment

Monaco

Monaco: Legal Framework and Formation Rules and Fees

Nevis

Nevis: Legal Framework and Formation Rules and Fees

Panama

Panama: Legal Framework and Formation Rules and Fees
Panama: Requirements for Acting as Trust Company in Panama

Seychelles

Seychelles: Legal Framework and Formation Rules and Fees

Turks & Caicos

Turks & Caicos: Legal Framework and Formation Rules and Fees
Turks & Caicos: The Voidable Dispositions Ordinance

Vanuatu

Vanuatu Legal Framework and Formation Rules and Fees




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