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Taxation of net-profits interests under the Windfall Profit Tax

Journal Article · · Oil Gas Tax Q.; (United States)
OSTI ID:6705872
The authors consider the Windfall Profits Tax (WPT) the most complex tax legislation ever enacted from an administrative standpoint. They feel it imposes overwhelming burdens on producers, operators, and first purchasers who must comply with the withholding, depositary, and filing requirements of the Act. An analysis of one facet of the WPT deals with the problems encountered with imposing the tax on holders of net-profits interests. In the absence of statutory guidelines, it is not clear what the Treasury Department's ultimate position will be. Until definitive guidelines are provided, net-profits-interest holders must carry on business without administrative sanction. Meanwhile, other approaches suggest viable alternatives for calculating the tax and complying with the spirit of the law. 46 references.
Research Organization:
Peat, Marwick, Mitchell and Co., Dallas, TX
OSTI ID:
6705872
Journal Information:
Oil Gas Tax Q.; (United States), Journal Name: Oil Gas Tax Q.; (United States) Vol. 24:2; ISSN OGTQD
Country of Publication:
United States
Language:
English

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