Chevron loses appeal against $260 million Australia tax bill

Chevron loses appeal against $260 million Australia tax bill

CANBERRA, Australia — An Australian subsidiary of U.S. energy giant Chevron Corp. lost a court appeal on Friday against a 340 million Australian dollar ($260 million) tax bill in a ruling with ramification for how multinational corporations transfer money.

Three judges of the Australian Federal Court unanimously rejected Chevron Australia’s appeal against tax assessments for five years ending in 2008.

The court found the company had reduced its Australian tax cost through 9 per cent tax-deductible interest payments on a $2.5 billion loan from U.S.-based subsidiary Chevron Texaco Funding Corp., which had borrowed the money at a lower rate.

The Australian Taxation Office welcomed the ruling which it said has direct implications for other cases the office is pursuing regarding loans within multinational corporations.

Australia has some of the world’s toughest rules to ensure it collects the correct amount of tax on profits made in the country, said Treasurer Scott Morrison.

Chevron said it was disappointed and might appeal to the High Court of Australia.

“As recognized by the trial court in the dispute, the financing is a legitimate business arrangement and the parties differ only in their assessments of the appropriate interest rate to apply,” a Chevron statement said.

Grant Wardell-Johnson, a tax partner at KPMG, described the ruling as a “critical case.”

“This is a substantial win for the (Australian Taxation) Commissioner, and many taxpayers will need to review their transfer pricing methodologies,” Wardell-Johnson said.

Taxe authorities have said seven global technology, energy and resources companies will receive a combined bill for outstanding tax of AU$2 billion ($1.5 billion) by the end of June. The companies have not been named.

Rod McGuirk, The Associated Press

Just Posted

Vernon one of Canada’s most dangerous places

Penticton, Kamloops, Kelowna, Lake Country and Salmon Arm also make Maclean’s list

Traci Genereaux: Gone, but not forgotten

COLUMN: Family, friends want justice for Vernon teen

Sagmoen’s court case adjourned again

Curtis Sagmoen will appear back in court on Dec. 14

Woman extricated after single-vehicle crash

Incident took place on Foothill Road in Salmon Arm.

Uber official says public needs to push for ridesharing in B.C.

Mike van Hemmen tells Kelowna Chamber of commerce ridesharing would be ‘win-win-win’

Okanagan ski hills open for the season

Both Big White and Silverstar Resort open for the 2017-18 season Thursday

Four years for discharging shotgun in home, school break-in

Yvon Martel also threatened his wife and broke into an elementary school

An adopted cat is the best 10 pounds you’ll gain this season

BC SPCA encouraging families to add a forever feline friend during adoption event Nov. 24 to Dec. 3

Up close and personal roots performance on Vernon stage

The Vernon and District Performing Arts Centre Society presents William Prince Nov. 29-30

B.C. co-ops relieved with Ottawa’s housing strategy

Federal government to have a new co-operative housing funding model in place by 2020

Letter to the editor: Missing woman’s parents appreciate search effort

To take part in the banner drop, poster distribution and the drone… Continue reading

Investigating effects of wildfires on business

Thompson Okanagan Regional District researching what help is needed after 2017 wildfire season.

Mayor’s column: Be silent no more

Please join us on Dec. 6 at the Salmon Arm Campus of… Continue reading

Column: On stars and sleighs

In the immortal words of Elvis, my hands were shaking and my… Continue reading

Most Read