Upstream Tax Analyzer

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 Others are using outdated custom modules within their ERP system that now require manual manipulations outside the system.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 records become more difficult and time-consuming.

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.

Overview of Deloitte's Upstream Tax Analyzer

Some of the features and calculations in the Upstream Tax Analyzer are listed below.

Tax calculations

• 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

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.