There are various types of resource tax base, and some present greater administrative challenges than others. To mention some of the most common:
• Bonuses payable when exploration and production licence agreements are signed (or on some later event such as commercial discovery) are the simplest of all. They require a single payment on the happening of a clearly defined event, with no on-going administration. (Of course, awarding licences in a way that achieves the best possible negotiated terms and avoids the risks of collusion and corruption requires the design of sound administrative procedures, and raises many important and complex issues.3 These are not, however, generally thought of as a tax administration issues, and are not discussed in this chapter.)4 Bonuses, being paid up-front, are obviously not responsive to later unforeseen changes in profitability or prospects, so large bonuses may lead to re-negotiation of the resource tax regime, thus indirectly creating administrative complication later.