Karl Schmalz

ITIC Participates at 83rd API Federal Tax Forum

The 83rd Annual American Petroleum Institute Federal Tax Forum was held in Houston on 24-25 April. Congratulations to Stephen Comstock, API’s Director of Tax and Accounting Policy, his staff, and the entire organization on this terrific accomplishment.  The conference covered a wide range of taxation issues relevant to the industry, including updates on prospects for tax reform in the US, as well as updates on tax litigation, rules and regulations, and the current status of the Internal Revenue Service.

ITIC Senior Advisor Karl Schmalz presented an update on the work of the UN Extractives Tax Subcommittee, summarizing the nine guidance notes that have been approved by the Committee of Experts on Cooperation in International Tax Matters for publication later this year. Mr. Schmalz also discussed work underway at other international finance organizations relevant to the oil and gas industry, and recommended enhanced engagement by the industry with these, and other organizations, to ensure work done and reports/recommendations are fact-based, misconceptions are corrected, and inaccuracies do not go unchallenged.


Karl Schmalz is a Senior Advisor to the International Tax and Investment Center (ITIC) and Former Assistant General Tax Counsel, Exxon Mobil Corporation.

ITIC Comments on Transfer Pricing in the Oil and Gas Industry

ITIC’s Oil and Gas Taxation and Regulatory Dialogue recently submitted comments on The Platform for Collaboration on Tax's "Discussion Draft: A Toolkit for Addressing Difficulties in Accessing Comparables Data for Transfer Pricing Analysis." The toolkit “is designed to assist developing countries in navigating an important area of international tax policy: transfer pricing [… and] specifically addresses the ways developing countries can overcome a lack of data on “comparables,” or the market prices for goods and services transferred between members of multinational corporations.”

ITIC Oil & Gas Dialogue Meets in Washington

ITIC's Oil & Gas Taxation and Regulatory Dialogue held a series of meetings this week in Washington with organizations active in natural resource taxation issues in developing countries to foster understanding and promote balanced, fact-based discussion among government, academics, business, and international organizations. The group of international oil and gas companies also held internal meetings to review its priorities for 2017.  

One of the group's first projects in 2016 was the publication of a set of principles for developing countries to consider when they embark on natural resource development projects. Since such projects are long-term and investment intensives, it is important to establish relationships built on equity and trust. A copy of the principles is available here. 

While in Washington, the group also held a dinner discussion with ITIC Executive Committee Chairman Jim Miller (Former Director of the U.S. Office of Management and Budget) and ITIC Honorary Co-Chairman Dave Camp (Former Chairman of the Committee on Ways and Means, U.S. House of Representatives) to discuss U.S. tax and regulatory reform proposals.

ITIC Releases Principles for Developing Country Hydrocarbon Investment Policies

The International Tax and Investment Center, a nonprofit research and educational organization, has developed a set of principles for hydrocarbon investment policies that experts believe will assist in the dialogue between developing countries and prospective oil and gas exploration and development investors. The Principles for Developing Country Hydrocarbon Investment Policies are designed as a possible framework for collaboration between countries and investors to ensure countries obtain full value for their resources while attracting and sustaining the substantial investments and operational expertise needed for efficient, safe and environmentally sound resource development. Consistent with ITIC’s mission to bring parties together for dialogue on important fiscal, taxation, and investment policy issues, this set of oil and gas investment principles is an important starting point for countries and investors as they seek to work together in promoting economic development and attracting international investment.

These principles are a product of extensive dialogue among several leading international financial institutions and a number of oil and gas companies with vast international experience.  The principles were finalized and adopted by ITIC’s Oil and Gas Taxation and Regulatory Working Group, which will facilitate discussion of the principles with officials in various countries as we as multiple-stakeholder sessions.

The Principles for Developing Country Hydrocarbon Investment Policies can be viewed here.

*Karl Schmalz has over 37 years’ experience working for major international oil companies as a tax executive. He is currently a senior advisor to ITIC.