Consultant: Valuing Mining Assets for Capital Gains Tax

at  IISD

BACKGROUND

The International Institute for Sustainable Development (IISD) is an award-winning independent think tank working to accelerate solutions for a stable climate, sustainable resource management, and fair economies. Our work inspires better decisions and sparks meaningful action to help people and the planet thrive. We shine a light on what can be achieved when governments, businesses, non-profits, and communities come together. IISD’s staff of more than 270 people, plus over 150 associates and consultants, come from across the globe and from many disciplines. Our work affects lives in nearly 100 countries.
IISD hosts the Secretariat to the Intergovernmental Forum on Mining, Metals, Minerals and Sustainable Development (IGF).
The Global Mining Tax Initiative (GMTI) is a distinct program offering for IGF member countries that covers fiscal policy for the entire mining value chain, from exploration and development to mining, processing, mineral sales, and mine closure.
Drawing on the IGF’s broad experience working on financial benefits, this specialized and comprehensive work program focuses on all aspects of fiscal policy, including taxes, royalties, and financial modelling. It provides unique expertise on international tax challenges related to the global mining sector, which is dominated by multinational companies.

CONTEXT OF THE ASSIGNMENT

Transferring ownership of mining licences can generate significant income that many countries seek to tax as capital gains. In recent years, many resource-rich countries have taken steps to review their domestic legislation and international treaty networks to improve their ability to tax the transfers of mining assets. However, challenges relating to the valuation of mining licences and assets for taxation purposes continue to make implementation difficult.
Economic valuation is a crucial component of the mining industry. It is a tool that allows all parties to assign an economic value to a mining project, to a portfolio of mining projects, or to large mining companies with interests in dozens of mining projects. It is used by companies, investors, governments, analysts, and court systems all over the world, who rely on independent expert assessments in their decisions and transactions. Understanding economic valuation in the context of the mining industry is key to determining capital gains.
The GMTI is seeking a consultant to prepare materials and deliver a workshop in person/virtually to our member countries on the valuation of mining assets for the purpose of collecting capital gains tax. This will help countries not only to provide guidelines to taxpayers on their preferred/appropriate methodology to use in valuing mining assets, including mining licences, but also to build the tax administration’s capacity to review the taxpayer’s valuation report.

Please refer the Job description for details