In April the Federal Court ordered the oil and gas multinational Chevron to pay $340 million in tax. For the past few years this company has gotten away with paying no company tax at all by claiming that it did not make a profit.
The truth is it made billions, but the company inflated its expenses by having its Australian operation take a loan from a US subsidiary with an interest rate 25 times higher than the market norm.
US multinational energy corporation Chevron faces an increased tax bill of $340 million after losing an appeal against the Australian Taxation Office (ATO), over a landmark profit-shifting case.
The full Federal Court on April 21 unanimously upheld a previous decision that Chevron engaged in illegitimate transfer pricing by paying a higher rate of interest on a loan from its subsidiary to shift profits from Australia to the US.
