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Losses Against Taxes

Under many real world jurisdictions, businesses can carry forward business losses for many years. These losses can be applied against tax payments when the business in that jurisdiction finally begins to make a profit.

In OilFinancier, losses can be accumulated and later applied against tax payments. These losses originate from the following sources:

  1. Difference between purchase price and market value of a new well
  2. Procurement fees
  3. Losses from suspended operations
  4. Losses originating from excessive expenses (operating and interest)
  5. Losses from a private transaction of a well
  6. Losses from abandoning a well before its estimated life span

All these losses are incurred on a provincial basis and can only be applied against income in that province. Losses cannot be transferred from one province to another or transferred to another financier.

If there is no revenue in that province, the losses are not used up. They can stay on the books for rest of the seminar.

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