ABSTRACT
This chapter looks at the post-nep fiscal regime in greater detail than has been possible in previous chapters. It describes briefly the nature of the tax and pricing changes. The chapter also looks at the price and tax dynamics and assesses their general effects on consumers and taxpayers; revenue shares between Ottawa and the producing provinces; industry cash flows for both the foreign-owned and Canadian sectors; and the overall economy. It explores selected dynamics and more specific effects in such areas as the fate of Dome Petroleum, the takeover spree, and the bargaining over mega-project fiscal deals. The chapter offers some concluding observations about the politics of implementation as revealed in the tax and pricing arena. It draws attention to the politics of evaluating the nep. The pre-nep tax system consisted of two main charges, federal and provincial income taxes and provincial royalties.
