And then pay it back over 5 years, like the £200 to be taken off bills in autumn, but this time they're asking for £1000 ... it's like the energy companies using the govt as loan sharks to prop up their businesses ...
The costs have gone up because there's a shortage due to Uncle Vladi and everyone trying (or pretending to try) to stop buying from him.
Because that would see the voters shaft the govt come the next general election.
That might be true in foreign lands but not in the UK. Corporation tax is calculated on book profits, and that includes increases in stock value such as 90 days of oil reserves.
I was talking of the threat of windfall taxes.
Quite.
If countries are avoiding Russian oil and gas, that increases the competition for supplies from other countries. Those supplies can only be ramped up to a limited extent over a short time period and so demand exceeds supply and prices rise.
The market is working to an extent, but is not a free market and cannot function when governments restrict licences; a small number of countries band together to restrict supply and drive prices up; and increasing supplies takes years and lots of investment ... that companies don't want to make when governments are likely to change the rules at any time and reduce the market for, driving down prices too far to be profitable.
If the alternative is people freezing or starving, which is what's happening at the moment, I'm sure the ROI can take second place.
The tax would presumably be on *extraction* in the UK. ie people who drill on the UK continental shelf. The mechanism is already in place, it's just currently set at 0%:
It makes the North Sea less profitable, but skimming off 66% of the 3x rise in wholesale prices will make the North Sea just as profitable as it was in normal times, and Shell/etc were happy to invest based on that return.
Theo
This is probably far too complex for you to follow. It indicates how stocks contribute to a Corporation Tax computation:
Stating the bleeding obvious, f****it.
Bill
Prices were rising before that! You don't need massive reserve supplies of gas because government policy says that renewables are working! You don't invest in more oil or gas if the politicians say that there will be no need for them in a few years time.
There seems to be a recent spate of new/extended north sea oil/gas development?
In the UK it does. Maybe Australia have different accounting / Tax rules / laws.
Then as I expected the link was above you mental abilities and you don't recognise that unsold stock is taken into account when computing Corporation tax.
I pity you. Clearly you have never run a company in the UK.
I did wonder Rod's point, apart from making himself look even more silly than usual.
It depends on whether you want future investment in the North Sea, or not.
I guess 'windfall tax' gets more publicity.
No-one is freezing at the moment, even in Scotland, surely ?.
Also in Scotland I see the BBC text pages state that 1 in 25 people in Scotland is obese, so perhaps a year of an enforced 5:2 diet regime will do them some good :-)
No it's a 'defect' of the fact that most countries do not have their own oil and have to buy it at world prices (unless they have entered in long term contracts with a country that does have oil).
Also, the producer country tends not to sell to the end-buyer. In between the producer and user is an army of oil traders and gamblers. The latter is what needs regulating.
So if you have stock of £5m say at the beginning of the year, and £20m at the end how much corporation tax on the stock element would you pay?
While you accept everyone pities you?
Didn't think so, a failed chemist yet consider yourself an expect on accountancy.
And so on. I see you're calling yourself Joey now - a joey as we all know is an infant marsupial. Sums you up nicely.
+1
Then your comprehension of the link I gave is poor. It specifically mentioned unsold or retained stock and how this adds to gross profit.
I may be a child but you are clearly senile.
You don't clearly comprehend the link. How much gross profit did this company make? Do you think it really made a gross profit of £40k?
You are senile and cannot do simple sums. Also in denial that retained stock is not subject to corporation tax.
Why do you think stock takes are required? Do you really think Corp tax doesn't depend on this?
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