Multinational oil giant Chevron will be forced to pay more than $300 million after losing a landmark appeal in the Federal Court last week.
Chevron was ordered to pay more than $250 million in back taxes and an estimated $60 million in fines, after Australian tax authorities alleged the company used a series of loans and related party payments worth billions of dollars to slash its tax bill by up to $258 million.
Documents filed in the long-running dispute showed how Chevron allegedly engaged in a complex scheme to benefit from the tax-free interest on inter-company loans.
International Transport Workers Federation president Paddy Crumlin welcomed last week’s decision and said Chevron needed to come clean and pay its fair share of taxes.
“This demonstrates the complete disregard Chevron has for Australia and the lengths it will go to avoid its obligations,” he said.
“The scheme rejected today was for $2.5 billion in high interest related party debt. The ATO is now examining a similar $35 billion Chevron tax scheme. In light of this decision this audit is now the most important the ATO has ever undertaken.
“With LNG exports expected to triple in the next few years it is critical that tax authorities and governments take a very close look at how Chevron structures its’ tax arrangements.
“Billions of dollars of tax revenue could be lost to the Australian people unless the government takes an aggressive approach to major tax minimisers like Chevron.”
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