Upstream Tax Analyzer
Tax depletion, depreciation, and amortization are important components of the tax compliance, provision, and planning processes for upstream oil and gas companies. Tax departments often spend significant time gathering data and preparing calculations rather than analyzing results.
- The need for a new solution
- Watch the Upsteam Tax Analyzer video
- Request a demo
- Overview of Deloitte's Upstream Tax Analyzer
- About Deloitte’s Oil & Gas practice
The need for a new solution
Many companies still use spreadsheets to calculate tax cost recovery. Others are using outdated custom modules within their ERP system that now require manual manipulations outside the system.
Spreadsheets can require numerous manual processes that can result in issues with data quality, version control, and computational accuracy and more frequently now are creating control weaknesses.
As upstream companies continue to modify their portfolio of properties, these inefficiencies in maintaining tax basis
What if you could:
- Reduce the cycle time to maintain upstream tax basis recovery
- Use a database to support tax basis of assets and
- Spend more time on tax analysis and scenario planning?
Deloitte can help.
Upstream Tax Analyzer
Overview of Deloitte's Upstream Tax Analyzer
Some of the features and calculations in the Upstream Tax Analyzer are listed below.
- Cost depletion, with 105 percent safe harbor
- Percentage depletion
- Net income limitation and overhead allocation
- Barrel per day limitation
- 65 percent taxable income limitation
- Leasehold tax basis tracking
- Fixed asset basis tracking and calculation of units of production (UOP) depreciation
- Intangible Drilling Costs (IDC)
- IDC Preference, including excess IDC and Net Income from Oil & Gas (NIOG)
- IDC amortization
- Capitalized IDC tracking
- Cumulative expensed IDC tracking
- Oklahoma and Louisiana state calculations
- Calculation and reporting logic built specifically for corporations, partnerships, individuals, integrated taxpayers, and independent producers
The Upstream Tax Analyzer is an internet-facing technology housed in a secure environment on Deloitte servers to maintain the integrity and privacy of data.
About Deloitte’s Oil & Gas practice
Deloitte’s US Oil & Gas practice, centered in Houston, Texas, includes approximately 800 practitioners. Deloitte’s global network of Oil & Gas professionals consists of more than 2,500 practitioners.
What we offer:
- A distinct perspective towards technology and solutions
- Professionals dedicated to the oil and gas industry
- A keen focus on timely and thoughtful delivery of results
- Consistency and continuity
- Extensive experience in IRS defense and benefits sustention. Our deliverables are designed to provide documentation for IRS examination.
As used on this website, “Deloitte” means Deloitte Tax LLP. Please see www.deloitte.com/us/about for a detailed description of our legal structure. Certain functionalities are dependent upon the specific type of agreed-upon services provided by Deloitte Tax. Certain services may not be available to attest clients under the rules and regulations of public accounting.
Trends, opportunities, and predictions
Overcoming the headwinds