Project Finance Tax and Accounting

We are specialists in project finance, and infrastructure tax and accounting; we provide advice as a one-stop-shop.

You will get clear and precise guidance on how to apply tax legislation and accounting standards to your project.

We have a deep understanding of the impact tax and accounting treatments have on a project cash flows and financial statements. Our services range from due diligence, advice on a single issue through to full advice across both tax and accounting.

Wide sector experience

Our team comprises chartered accountants and qualified tax advisors who have worked on hundreds of project finance and infrastructure deals across multiple sectors and countries. We have detailed knowledge of sector specific issues gained from working on real life transactions.

Targeted expertise

In particular, we have in-depth knowledge of UK and Canadian project finance and can provide expert tax and accounting advice to new entrants to those markets.

One of our specialities is the tax and accounting implications of refinancing, and another accounting for a broad range of sectors such as:

  • University accommodation;
  • Renewables; and
  • Social infrastructure projects.

Bespoke service ensuring compliance with tax legislation and accounting standards

Working alongside your in-house team, we help you interpret and apply complex tax laws and accounting standards. We support you with delivering the most efficient structures for new projects, acquisitions or disposals of assets.

We’ll happily assist you with specific issues you may encounter on your transaction or provide full advice on all its tax and accounting aspects.

Tax and Accounting Services

Transaction Advice

We offer professional advice on how applicable tax legislation and accounting standards are likely to affect your project finance transaction.

We can advise you on the application of IFRS across the World as well as either UK GAAP or Private Enterprise (PE) GAAP and tax legislation in the UK and Canada.

With the support from our renowned modelling team, we can efficiently model and assess the impact of different structures, and advise on the best course of action to provide an effective tax and accounting outcome.

Refinancing Advice

We help our clients unlock value from their projects through focused tax and accounting advice on refinancing.

You can rely on the team to support you at any stage of the refinancing. We offer independent advice enabling you to understand the tax and accounting consequences of each aspect of the refinancing including:

  • treatment of any break costs
  • treatment of refinancing gain share
  • treatment of the existing and new debts
  • analysing methods of cash extraction post refinancing
  • application of the unallowable purpose rule

Grantor and Operator Accounting

Getting an assessment of the implications of the project structure and advice on how it should be accounted for in the private sector operator’s accounts is obviously key.

We can also review the proposed structure and contracts to assess whether they are likely to result in a liability being recognised on balance sheet for the government or other public sector body grantor.

Our review would determine any material factors in the proposed structure and contractual arrangements that would individually or cumulatively result in a liability being recognised in the grantor’s accounts, as well as indicating how we would expect to see the transaction being reflected in the SPV’s financial statements.

Reviewing Tax & Accounting Assumptions in Models

We can review financial models to determine whether the tax and accounting assumptions are in line with applicable accounting standards and tax legislation.

Depending on your needs, we can:

  • prepare a summary of these assumptions;
  • recommend amendments to ensure that the assumptions are reasonable; and
  • provide a letter stating that the assumptions are in line with applicable accounting standards and tax legislation

We offer this service as a standalone sign-off or as part of a full model audit.

Why Choose Operis?

Flexible

We can support you on all aspects of your deal or just one single issue.

One-Stop-Shop

We cover both tax and accounting queries. No need to wait for responses from different teams.

Clarity of advice

We give clear plain-language conclusions on the likely implications of different options.

International Expertise

Experts in UK and Canadian tax legislation for project finance, with considerable experience in other jurisdictions.

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years of combined experience

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projects worked on

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countries covered

Project Value Country Year  
Barnsley BSF III Refinancing advice & Advice on BEPS legislation £54 m United Kingdom 2019

The Barnsley BSF programme involves replacing 13 secondary schools with 9 completely new build Advanced Learning Centres (ALCs). It consisted of 3 phases, with all of the ALCs planned to be built and opened by 2011/14. Operis was engaged to advise on the tax and accounting implications of the proposed refinancing including in relation to the grandfathering provisions included in the UK's interest deductibility legislation.

Coventry Street Lighting Refinancing advice £53 m United Kingdom 2019

The Coventry Street Lighting PFI Project involved the replacement of approximately 26,000 lighting columns, the installation of 6,000 new columns and the replacement of 3,000 traffic signs across Coventry. Operis was engaged to advise on the tax and accounting implications of the proposed refinancing including in relation to the grandfathering provisions included in the UK's interest deductibility legislation.

Hartland Residuals Treatment Facility Greenfield Advisory £71 m Canada (BC) 2018

The Hartland Residuals Treatment Facility is near Victoria, British Columbia, in Canada. The project was procured by the Capital Regional District (CRD) under the design-build-finance-operate-maintain P3 model.

View case study
EFG Hermes Vortex Solar Refinancing IFRS 16 advice £450 m United Kingdom 2018

Project Vortex involved the refinancing of EFG Hermes' UK solar assets with a total capacity of 365MW. Operis was delighted to provide a review of the leasing calculations for the project following the adoption of IFRS 16.

Royal Holloway Rusham Park & George Eliot Hall Residences Tax & Accounting advice £229 m United Kingdom 2018

The project involved the procurement by the University of a private partner to provide finance and operational services for George Eliot Hall. Operis was delighted to provide tax and accounting support as part of its wider advisory mandate.

Meet our Tax & Accounting Team

Meet Daniel Daniel Adams
Daniel Adams
Interim Joint Head of Tax & Accounting
Meet James James Jones
James Jones
Interim Joint Head of Tax & Accounting
Tax & Accounting

A465 Road in Wales

The A465, located in the Heads of the Valley area, was initially built in the 1960s and has been identified as needing improvement due to its width, restricting traffic flow and resulting in poor visibility in many areas.

Read more
Tax & Accounting

Hartland Residuals Treatment Facility

The Hartland Residuals Treatment Facility is near Victoria, British Columbia, in Canada. The project was procured by the Capital Regional District (CRD) under the design-build-finance-operate-maintain P3 model.

Read more
Tax & Accounting

Surrey Street Lighting Refinancing

The Project involved refinancing the existing senior debt used to finance the Surrey Street Lighting PFI project in November 2020.

Read more

Let's talk about your project

Discuss the specifics of your project with our Tax & Accounting team

Get in touch

CONTACT US

Please get in touch with either of our regional offices.

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Erwan Fournis
Global Head of Financial Advisory

+44 207 562 0444

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Carmen Wade
Financial Advisory, Head of North America

+1 647 243 3840

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Jun Tao
Global Head of Model Audit & Financial Modelling

+44 207 562 0428

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Mark Southall
Associate Director - Model Audit & Financial Modelling

+1 647 846 7384

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Philip Allen
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Operis Europe

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+44 207 562 0400
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Operis North America

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+1 647 846 7382
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CONTACT US

Discuss your requirements with us

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Daniel Adams
Interim Joint Head of Tax & Accounting

+44 207 562 0483

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James Jones
Interim Joint Head of Tax & Accounting

+44 207 562 0485

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