• 3 days Nuclear Bomb = Nuclear War: Saudi Arabia Will Develop Nuclear Bomb If Iran Does
  • 3 days Statoil Changes Name
  • 3 days Tillerson just sacked ... how will market react?
  • 2 days Russian hackers targeted American energy grid
  • 2 days Is $71 As Good As It Gets For Oil Bulls This Year?
  • 3 days Petrobras Narrows 2017 Loss, Net Debt Falls Below $85bn
  • 3 days Proton battery-alternative for lithium?
  • 3 days Ford Recalls 1.38 Million Vehicles (North America) For Loose Steering Wheel Bolt
  • 2 days Oil Boom Will Help Ghana To Be One Of The Fastest Growing¨Economies By 2018!
  • 2 days Country With Biggest Oil Reserves Biggest Threat to World Economy
  • 3 days I vote for Exxon
  • 2 days HAPPY RIG COUNT DAY!!
  • 3 days UK vs. Russia - Britain Expels 23 Russian Diplomats Over Chemical Attack On Ex-Spy.
  • 3 days Why is gold soooo boring?
  • 3 days South Korea Would Suspend Five Coal - Fire Power Plants.
  • 2 days Spotify to file $1 billion IPO
Alt Text

Two LNG Giants Race For The Same Gas

Two of the biggest LNG…

Alt Text

Diesel Trucks Are Here To Stay

While alternative fuel commercial trucks…

Alt Text

The Secret To More Efficient Batteries

A new study is suggesting…

Joao Peixe

Joao Peixe

Joao is a writer for Oilprice.com

More Info

Trending Discussions

Louisiana Loses ‘Millions’ in Oil Extraction Tax Glitch

Louisiana Loses ‘Millions’ in Oil Extraction Tax Glitch

Procedural inadequacies at the Department of Revenue have reportedly cost the state of Louisiana millions of dollars in oil and gas extraction taxes between 2009 and 2012, according to the results of an audit released on 2 December.

Tax revenues from oil and gas extraction are one of the state’s biggest sources of operational financing and auditors estimate that Louisiana has lost millions in potential revenue due to severance tax inaccuracies.

"Because severance taxes comprise approximately 10 percent of the state's general fund revenues each year, it is important for LDR [Louisiana Department of Revenue] to ensure these payments are accurate and timely," the auditor wrote in an 11-page report.

Related article: Supply Considerations Key As OPEC Members Head To Vienna

The Auditor's Office found several problems with the state's monitoring and refunding of the severance tax, which is levied on natural resources removed from the ground or water. Auditors reviewed severance tax payments from 2009 through 2012.

"We don't know. We don't know what the true [amount of money lost] is," Legislative Auditor Daryl Purpera commented on the severance taxes that went unpaid.

According to the report, in 2010, the LDR stopped using an automated program called “GenTax”, which pinged companies that weren’t filing severance tax returns, and other avenues for keeping track of such filings are too limited to be accurate.

When they flipped the switch on “GenTax,” they may have lost out on the collection of millions of dollars—a theory supported by auditors’ claims that that revenue department had identified millions of dollars in unpaid taxes before shutting down the program.

Related article: Trans-Adriatic Pipeline Takes Step Forward

According to the audit, “the department's review of severance tax refund requests also is insufficient, allowing companies to get more refunded to them than what is owed.”

Steps have been taken to remedy the problem, which the oil and gas industry says is being exaggerated.

Natalie Howell, undersecretary for the revenue department, said the program has been redesigned and will be up and running before the end of December, and that the department was also devising an automated method for determining whether companies' self-reported data matches market rates.

By. Joao Peixe of Oilprice.com

Back to homepage

Trending Discussions

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News