Oil & Gas Sector
Sectors We Serve
Oil & Gas Sector
Our support of small to medium sized oil & gas companies in Canada’s resource sector provides the necessary confidence that enables our clients to focus on growing their core competencies. The entrepreneurial flair of Western Canada’s energy sector creates a high growth, fast paced business environment and this dynamic requires a solid, steady and reliable partner. We provide a unique blend of accounting compliance support and in-the-field know how that enables us to deliver compliance support that pays for itself with valuation reviews. Increase confidence with lower operating costs.
Bonavista Energy Corporation
Case Study 1: Oil & Gas client appeals stalled
AEC is retained to review and advise on long outstanding assessment appeals from 2002 relating to a number of plants recently acquired by our client. The municipalities, the assessment authorities and the ratepayers have actively sought settlement of the issues with no progress.
Parties to the appeal are at a stalemate, each year the risk grows both to the municipality and the taxpayer. In addition, two other similar plants acquired by our client are appealed and in the background, awaiting resolution of the lead complaint.
AEC has a reputation for balanced analysis. AEC was able to leverage our expertise and knowledge in the area of Oil and Gas assets and to meet with the stakeholders in pursuit of a fair and reasonable conclusion. With numerous meetings with the assessor and on site detailed inspections AEC puts forward balanced recommendations resulting in agreed to settlements for all outstanding years.
The risks and dangers associated with longstanding open appeals are concluded through mutual agreement between all stakeholders. The parties to the appeal are satisfied. The clients tenacity and rationale for appeal are substantiated in the terms of the settlement.
Case Study 2: Compliance/Year End Reporting: AB, SK, BC, MB
AEC is retained to represent client on all matters of assessment and taxation. A detailed review of all assets and their related assessments is required, regulated compliance reporting has not been kept up to date, company cannot confirm whether their assessments are fair and equitable and handle property tax by simply paying the bills each year.
As the company has grown, the existing and new assets have been merged together without thought to duplication and errors, inflated assessment values on wells, pipelines and surface equipment are inevitable and because the company has not responded to the annual request for information they have forfeited their right to appeal the assessed values of the sites.
AEC has a reputation for strong relationships and reporting to clients and the assessment community. Reporting is shared with our clients giving them comfort that all reporting standards have been met; follow up meetings are scheduled with assessment personnel in efforts to finalize all matters prior to the assessment being prepared.
Client’s current assets are updated from an assessment perspective, assessments are verified, reduced where appropriate and inventory and status are detailed. Overall tax savings are realized in all provinces and the company can move forward on future growth with a strong foundation of assessment for current assets. The process will be updated for current assets and repeated as the company grows through acquisition and by the drill bit.