IDEAS home Printed from https://ideas.repec.org/a/clh/briefi/v3y2010i3.html
   My bibliography  Save this article

Taxing Canada's Cash Cow: Tax and Royalty Burdens on Oil and Gas Investments

Author

Listed:
  • Jack Mintz

    (School of Public Policy, University of Calgary)

  • Duanjie Chen

    (School of Public Policy, University of Calgary)

Abstract

This paper addresses in depth the impact of both corporate taxes and royalties on the decision to invest in the oil and gas sector for British Columbia, Alberta, Saskatchewan, Nova Scotia and Newfoundland & Labrador and in comparison to Texas. Similar to Chen and Mintz (2009), we estimate the marginal effective tax rate on capital for the oil and gas sector, comparable to other sectors in the economy. In our assessment, we include federal and provincial corporate income taxes, sales taxes on capital purchases and other capital-related taxes in our assessment such as severance taxes and royalties. Except for oil and gas investments in Nova Scotia and Newfoundland & Labrador offshore developments, oil and gas investments bear a higher tax burden compared to other industries in Canada. In other words, oil and gas investments are generally not “subsidized” but bear a higher level of taxes and royalties on investment compared to other industries.

Suggested Citation

  • Jack Mintz & Duanjie Chen, 2010. "Taxing Canada's Cash Cow: Tax and Royalty Burdens on Oil and Gas Investments," SPP Briefing Papers, The School of Public Policy, University of Calgary, vol. 3(3), February.
  • Handle: RePEc:clh:briefi:v:3:y:2010:i:3
    as

    Download full text from publisher

    File URL: http://www.policyschool.ca/wp-content/uploads/2016/03/cashcow1b.pdf
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:clh:briefi:v:3:y:2010:i:3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Bev Dahlby (email available below). General contact details of provider: https://edirc.repec.org/data/spcalca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.