Canadian And U.S. Resource Tax Laws: The Significance To Computerized Economic Evaluation

Resource based companies have been inundated with changes in government tax legislation during the past few years. To cope, capital investment planning analysts have turned almost completely to computer simulation modeling to react quickly enough to determine the effect on their companies' major investment projects and on the projected financial picture of the companies. This paper will examine various royalty and tax structures as applied to coal, oil and gas, and minerals in the U.S. and Canada with particular emphasis on recent changes in the Canadian tax scene and their implications to capital project economic evaluation in other parts of the world.