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Chevron reaches $340 million tax settlement with Australian Taxation Office

Staff Writer | August 20, 2017
Chevron has dropped a High Court appeal against a $340 million tax bill after making a deal with the Australian Taxation Office.
Chevron Australia
Oil exploration   The dispute related to interest paid by Chevron Australia
The agreement covered additional tax claims against Chevron regarding loan transfer pricing and has implications for the ATO’s pursuit of other multinational corporations.

“Chevron Australia has reached agreement with the Australian Taxation Office on the loan transfer pricing dispute and have withdrawn our appeal to the High Court,” a company spokesman said.

“Chevron believes the agreed terms are a reasonable resolution of the matter,” he said.

The dispute related to interest paid by Chevron Australia to a U.S. subsidiary, with the tax office arguing the company had reduced its liability by shifting profits offshore.

The assessments were made on the basis that interest paid by the Australian company was greater than it would have been under an arm’s- length dealing between independent parties.