IADC International Tax Seminar

Wednesday, 7 June 2023

2:00–5:00 pm  IADC Tax Committee Roundtable  Texas D (Committee Members Only, separate registration required)

Thursday, 8 June 2023

7:45 am  Registration & Coffee Service  Texas Foyer

8:15 am  Welcome & Opening Comments  Texas D

• Michael Weinstein, Chairman, IADC Tax Committee; VP Tax, Nabors

Moderator: Michael Weinstein, Chairman, IADC Tax Committee; VP Tax, Nabors
8:20 am  US Legislative Update
Speakers will discuss the status on extenders and other legislation, update on regulations and other topics of interest.

• Chetan R. Vagholkar, Senior Lead International Tax Partner, KPMG
• Jennifer Acuna, Washington National Tax Federal Legislative Services Group, KPMG

9:10 am  Pillars of the Tax Accounting World
This session will focus on the tax accounting considerations of the constantly evolving global tax landscape, including US regulatory updates, Pillar 2 adoption, and other topics.

• Alison Smith, Director, PwC UK
• Bret Oliver, Partner, PwC US
• Hilde Thorstad, Partner, PwC Norway
• Niels Muller, Partner, PwC Netherlands

10:00 am  Coffee Break

10:30 am  How Climate-Related Tax Incentives are Changing the Oil & Gas Industry
The Inflation Reduction Act of 2022 represents the largest climate-related investment in US history. Many jurisdictions are also introducing climate-related tax incentives. The discussion will focus on all areas of the carbon capture use and sequestration (CCUS) value chain – from the emitter to ultimate storage – and highlight key issues and opportunities throughout. CCUS projects continue to gain momentum and capital. For the oil and gas industry, the changes to CCUS incentives provide multiple benefits – supporting net-zero objectives and creating new markets while leveraging existing knowledge and skill sets.

• Greg Matlock, Partner, EY US
• Shannon Dowdles, Partner, EY UK

11:20 am Transfer Pricing – Out with Old, In with the New
Speakers highlight some of the challenges related to the industry’s historic transfer pricing practices between rig operators and owners.  Next they take a fresh look at some of the pressures driving a more robust analysis under a profit split approach.  And finally, they will present some practical applications of how to apply a profit split approach under the OECD/US arm’s length standards.

• Nick Gaudioso, Jr., Senior Manager, Deloitte Tax
• Mayank Gautam, Senior Manager, Deloitte Tax
• Randy G. Price, Managing Director, Deloitte Tax

12:10 pm  Luncheon  Texas E

Implications of Capital Discipline on US Production
As the world has restarted, investors in US producers have pushed the industry to “grow up” and be financially responsible.  What this means is living within their cash flows, returning massive amounts of capital, and a moderation of supply growth.  But other factors are at play in the upstream business, and a lack of investment could have rippling effects on longer term energy security and the energy transition.

• Reed Olmstead, Executive Director – Upstream Research, S&P Global

1:30 pm  A Journey Through The Life Cycle Of A US Tax Court Case
This presentation will discuss the procedural and strategic issues surrounding the prosecution of a case in the United States Tax Court.  We will address jurisdictional issues, pleadings, the different stages of a U.S. Tax Court case, informal and formal discovery, stipulations, fact and expert witnesses, post-trial briefing, and ultimate resolution.

• Robert C. Morris, Partner, Norton Rose Fulbright

2:20 pm  Pillar 2 – Practical Considerations Specific to Drillers & Modelling
Speakers will discuss the approach for the next three years in light of the transitional safe harbor rules and modeling to determine where safe harbor can apply including implications if the safe harbor test is not met.  Presentation will highlight key considerations under Pillar Two that may impact the drilling industry and help attendees understand what steps can be taken now in relation to assessing data requirements, software capabilities and tax planning considerations before Pillar Two comes into effect in 2024.

• Miano Maina, Tax Senior Manager, Deloitte IT.QCS
• Leslie Coye, Tax Senior Manager, Deloitte iCRS

3:10 pm  Coffee Break

3:30 pm  The Simple Fix: Responding to the Challenges in an Evolving World of Contract Drilling Transfer Pricing 
Although the contract drilling industry is one already heavily challenged by tax authorities, we face a new era tax controversy.  The IRS has been emboldened by recent court cases and political winds pushing for increased enforcement.  Outside the US, the tax authorities of major jurisdictions have been testing new arguments, and enacting domestic law in an attempt to bypass treaties.  Using experiences in the digital economy, we address three broad areas of attack by taxing authorities (classic arguments; recharacterizations; and denial of attributes), and a handful of simple taxpayer actions to mitigate each of these attacks and manage FIN 48 reserves.

• Gene Tien, Principal Economist, Baker Mackenzie Consulting LLC

4:20 pm  The Case for Malta as a Holding & Asset Owning Company Jurisdiction
Speakers will share the main foundations of the Maltese Tax System and some success stories of how Malta has been used in the past by the Oil & Gas industry in the implementation of their business strategy. Amongst the business models that have worked in the past will be mention of the case for a Maltese entity owning or leasing equipment like oil rigs or platforms being used in operations nearby. They will also cover how a Maltese holding company with a foreign branch can facilitate the flow of funds, limit the risks associated with holding profits overseas and manage the amount of taxes incurred on cross border payments of interest, royalties and dividends.

• Christopher Naudi, Partner, EY Malta
• Giljan Aquilina, Senior Manager, Malta Tax Desk for EY US

5:00 pm  Welcoming Reception Sponsored by Norton Rose Fulbright LLP  

Friday, 9June 2023

8:00 am  Registration & Coffee Service  Texas Foyer

8:20 am  Welcome & Opening Comments  Texas D

• Michael Weinstein, Chairman, IADC Tax Committee; VP Tax, Nabors

Moderator: Michael Weinstein, Chairman, IADC Tax Committee; VP Tax, Nabors
8:25 am  LATAM 2023 Tax Update
Summary of the most relevant changes on the tax legislation in selected LATAM countries focusing on new challenges for multinational entities engaged in the drilling industry. In the case of Mexico, we will discuss the entry into force of the Multilateral Instrument and the expected consequences for multinational companies.   

• Irene Hernández, Federal Tax Partner, PricewaterhouseCoopers S.C.
• Mario Alberto Gutiérrez, International Tax Partner, PricewaterhouseCoopers S.C.

9:15 am VAT Update & Traps for the Unwary
Speakers will discuss VAT issues on realign to service business, Key VAT planning issues and VAT management.

• Jacques Harmse, Managing Director – International Indirect Taxes Group, KPMG Dallas
• Anne M. Bardopoulos-Haleas, Sr. Mgr – International Indirect Taxes Group, KPMG Chicago
• David Leeds, Managing Director, KPMG Houston International Tax

10:00 am  Coffee Break 

10:30 am Future Outlook for UK Operating & Holding Companies
The UK will have higher taxes on people and companies and has been a first mover in Pillar 2 implementing legislation. What do these developments this mean for drilling operations in the UK and for UK holding company activities?

• David Evans, Partner, EY UK

11:20 am Middle East Update
The session will cover the wide-ranging tax reforms taking place in the Middle East, with particular emphasis on the Kingdom of Saudi Arabia (KSA) and the UAE.  The session will reflect on some of the key challenges that the drillers are facing with the tax authorities, in particular increased Transfer Pricing audits.  We will also focus on how new tax appeal committees are issuing their decisions.

• Farhan Farouk, Senior Executive Director / KSA Tax Leader, Deloitte and Touche & Co.
• Syed Naqvi, Senior Director, Business Tax, Deloitte and Touche & Co.
• Abi Joshi, Partner, Business Tax, Deloitte LLP
• Joy Mukherjee, Director, Transfer Pricing, Deloitte and Touche & Co.

12:10   pm Luncheon  Texas E

Tax Insurance: A Flexible Solution Designed to Facilitate a Transaction by Providing Tax Certainty
Tax insurance is a risk mitigation and credit enhancement tool that brings certainty with respect to the treatment of U.S. federal, state, local and foreign tax positions.  Some of its benefits include protecting taxpayers from unexpected liabilities, reducing or eliminating the adverse financial statement impact associated with a taxing authority challenge, and making an insured taxpayer whole in the event of a successful challenge to a given tax position.  This presentation will detail the uses of tax insurance by participants in the energy industry to effectively manage tax risk and the protection tax insurance provides if a tax position fails to qualify for its intended tax treatment.

• Seth Buchwald, J.D., CPA. Vice President, Executive Risk Advisors, McGriff
  

1:25 pm  Dealing With Non-US Tax Audits & Controversy 
Tax controversy has seen significant uptick – how to manage global controversy, how is Pillar going to impact global controversy and other hot topics will be covered.

• Deborah May, Lead Tax Partner, KPMG-Aberdeen
• Herko Koekkoek, Tax Partner, KPMG-Netherlands
• Per Daniel Nyberg, Tax Partner, KPMG-Norway
• Murilo Rodrigues de Mello, Tax Partner, KPMG-Brazil
• Victoria J. Sherlock, Managing Director, KPMG Houston Tax Controversy & Dispute Resolution Services

2:15 pm  Africa Update 
The session will discuss updates regarding the general climate and ease of doing business, recent law changes relevant to the drilling industry, changes in the practice of tax authorities across select countries in Africa. The update will also cover questions regarding dealing with tax audits and other challenges, like applying contractors’ stabilization clauses to sub-contractors.

• Gilles de Vignemont, Partner, Vignemont Africa Partners
• Guy Emmanuel Ngankam, Tax Partner, TaxAfrica Cameroon
• Omoike Obawaeki, Director, PwC

3:05 pm  Adjournment