Severance Tax Consulting
Shiv Om Consultants specializes in severance tax and royalty accounting for oil and gas producing companies. Severance tax services include post production cost deductions (PPC) and tax exemptions. Royalty services include analysis of lease agreements and calculations of proper allowed cost deductions.
Many Oil and Gas Producers are overpaying their severance taxes every month by under calculating post production costs. Overpayment of taxes and royalties unnecessarily increases lifting costs and reduces net operating income. Severance taxes and royalties are often overpaid because calculating the appropriate deductions is complex and a very different activity from typical field operations.
Severance tax and royalty compliance requires many resources beyond financial accounting and involves a great deal of data processing and cost allocation that is not within the functionality of oil and gas financial accounting software. Typically, resources needed such as process engineers experienced in tax and royalty compliance, are not available in accounting departments. This makes tax and royalty minimization a challenging activity for many producers.
We overcome the challenges of severance tax and royalty minimization with our People, Process and Technology. Shiv Om’s expertise lies in its team’s ability to analyze detailed production and operational data and having a thorough understanding of the severance tax regulations and royalty practices in various jurisdictions.