Home' Trinidad and Tobago Guardian : October 3rd 2013 Contents BG4 | ECONOMIST
BUSINESS GUARDIAN www.guardian.co.tt OCTOBER 2013 • WEEK ONE
BPTT was the single largest contributor to Gov-
ernment revenue in fiscal 2011, with payments
totalling more than $9.9 billion, followed by
Petrotrin with contributed revenues of more than
Government s reported revenue collection figure of $23.181
billion was $73 million less than the $23.254 billion reported
as paid by the 17 reporting oil and gas companies. This difference
represents 0.3 per cent of the companies reported payments.
"In reporting this outcome of the reconciliation exercise,
the independent EITI administrator advised that the differences
found "...relate to (i) differences arising from the use of different
exchange rates by the Government and companies in converting
foreign currency payments, and (ii) a timing difference on the
receipting of a payment made by a company to the Government
before the end of the fiscal year which was receipted by Gov-
ernment after the fiscal year. Payments made in foreign currency
were reconciled in the currency of payment".
The administrator reported that "no unadjusted differences"
were found during the reconciliation exercise.
This information is contained in T&T s first Extractive
Industries Transparency Initiative (EITI) Report, which was
released on September 30.
The report --- the first independent reconciliation of the
country s energy sector revenues --- was prepared by an inde-
pendent "EITI Administrator" comprised of a local/foreign
accounting firm partnership of BDO Trinity Ltd and the Hart-
Nurse Group of the United Kingdom.
The EITI report reconciles revenues reported to have been
paid to Government by the major oil and gas companies oper-
ating in T&T with the revenue reported to have been received
by Government. The reconciliation took place between March
and September 2013.
Although the overall or aggregate contribution of the oil
and gas sector to public revenues has long been public infor-
mation via the annual budget statement, the EITI Report
shows, for the first time, the exact contribution of each of the
country s major oil and gas companies.
The report found that Government reported receiving $23.181
billion (US$1 = TT$6.45) in revenue from the countries major
oil and gas companies. The biggest contributor to revenue was
petroleum profit tax of $9.1 billion, which is levelled on both
oil and gas production. Supplemental petroleum tax, which
is only collected against oil production, was the second highest
at $4.2 billion).
In addition to the financial reporting, the other key findings
of the report are:
A. The timing of production of information by the Board
of Inland Revenue caused considerable delay in the progress
of the reconciliation and complicated the selection of companies
for inclusion in the reconciliation. This was the result of the
need to first remove administrative constraints under the
Income Tax Act before the information could be released by
B. Progress on the reconciliation was delayed pending sig-
nature of the stakeholders memorandum of understanding
on June 7, 2013.
C. The information systems used by the Ministry of Energy
and Energy Affairs (MEEA) are manual and much effort was
required to be able to provide information. The ability of the
data systems and reporting used in MEEA to produce the
information required for EITI reconciliations on a continuing
basis should be examined and, where appropriate, improvements
D. As this was the first Report, there was some uncertainty
on the part of Government agencies and companies over the
type of information to be provided under certain of the headings
on the data collection templates, or misunderstanding of what
was to be reported.
E. In some cases there was inadequate care over the com-
pletion of the data templates.
F. The timeliness of response to reconciliation queries was,
in very many cases, slow, with many entities not providing
information until shortly before or even after the first review
of the reconciliation by the TTEITI steering committee.
Key recommendations in the report focused on three central
the conduct and scope of future reconciliations, the oversight
of the TTEITI steering committee over the EITI process, and
the extent of the EITI s reach in T&T. With respect to the
BPTT paid $10bn to Government in 2011
Energy Minister Kevin Ramnarine, second from left, receives the first EITI report from TTEITI chaiman, Victor Hart. At left are Mark Regis, TTEITI, and at right is Riaz Ali of BDO Trinity Ltd.
Continued on page 5
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