Windfall profits definition
Windfall profits and “resource rent” taxes and are too detailed and varied in their approach to include as an alternative, but examples are available. Australia has recently proposed a “mineral resource rent tax” on significant producers of certain minerals, which applies when profits exceed a certain specified rate. An additional profits tax formerly imposed in the Philippines (described as the “Additional Government Share”) is contained in the Department of Natural Resources of the Philippines Department Administrative Order (DAO) 99-56, “Guidelines Establishing the Fiscal Regime of FTAAs” (Dec. 27, 1999), which can be accessed online at ▇▇▇▇://▇▇▇.▇▇▇▇.▇▇▇.▇▇/policy/1999/minesdao99-56.pdf.
Windfall profits means profits that provide more than reasonable rate of return on investments to an LDI Licensee taking into account the cost of its operations.