Just in:
No running of govt from jail, says Delhi Lt Governor // German Job Market Resilience Bodes Well for Economic Recovery // CABSAT 2024 Ushers in 30 Years of Media Innovation // TUMI Hosts Global Launch Event in Singapore to Unveil Women’s Asra Collection and Announce Global Ambassador, Mun Ka Young // Samsung Electronics Launches 2024 Neo QLED 8K, Neo QLED, and OLED Displays to Spark the AI Screen Era // Saudi Arabia Unveils Green Financing Tool to Achieve Net-Zero Goals // Universal Language for Healthcare: General Authority Embraces Global Coding System // Samsung Partners National Heritage Board to Bring a Slice of Singapore’s Cultural Heritage to Samsung The Frame TV // Global Audience to Witness Thrill of Dubai World Cup // Melco Style Presents “SANRIO CHARACTERS STUDIO CITY CARNIVAL” – Explore a SANRIO World of Unlimited Love and Cuteness // A Tightrope Saudi Walk Towards Net-Zero // 2024 Lok Sabha Elections Will Be The Costliest One Till Now In The Whole World // Infineon and HD Korea Shipbuilding & Offshore Engineering jointly develop ship electrification technology // Andertoons by Mark Anderson for Fri, 29 Mar 2024 // Sharjah Chamber Breaks Ground on Final Expansion with New HQ Pact // French Leaders Gather for Interfaith Iftar Dinner // Ingdan Announces 2023 Annual Results // Simplified Business Moves for Al Reem Island Firms // Following the Money Trail: US and UK Investigate $20 Billion in USDT Transfers Tied to Sanctioned Russian Exchange // Sunshine’s Debut Features Leave Tech World Scratching Its Head //
HomeChannelsBusinessAustralian court dismisses Chevron appeal in landmark tax case | Reuters

Australian court dismisses Chevron appeal in landmark tax case | Reuters

1492744467

ADVERTISEMENT

MELBOURNE Chevron Corp lost an appeal on Friday against the Australian tax office in a landmark case in which the U.S. energy giant contested a tax bill of A$340 million ($260 million), including penalties and interest.

The full bench of the Federal Court dismissed the appeal against an earlier ruling that Chevron underpaid taxes by setting up a A$2.5 billion intercompany credit facility with an abnormally high interest rate which effectively lowered its taxable income within Australia.

Chevron said it was disappointed by the judgment in the case, which covers the five tax years from 2004 through 2008.

“We will review the decision to determine next steps, which may include an appeal to the High Court of Australia,” a Chevron spokesman said in an emailed statement.

The case is a first test of how Australia’s transfer pricing rules apply to interest paid on a cross-border related-party loan. It is being closely watched by multinational companies as governments around the world clamp down on what they deem elaborate means of reducing tax obligations.

“The economic effects of the internal financing structure put in place … included CAHPL’s (Chevron Australia Holdings Pty Ltd’s) Australian taxable income being reduced by the deductions it claimed for the interest payments it made to its United States subsidiary,” the court said in its latest ruling.

The Australian Taxation Office (ATO) said it was heartened by the ruling but noted Chevron could appeal to the High Court.

“This decision is significant and has direct implications for a number of cases the ATO is currently pursuing in relation to related party loans, as well as indirect implications for other transfer pricing cases,” an ATO spokesperson said in emailed comments.

(Reporting by Sonali Paul; Editing by Christopher Cushing)

Reuters

ADVERTISEMENT

ADVERTISEMENT
Just in:
Octa seeks to clarify Forex swap and swap-free accounts // TUMI Hosts Global Launch Event in Singapore to Unveil Women’s Asra Collection and Announce Global Ambassador, Mun Ka Young // Universal Language for Healthcare: General Authority Embraces Global Coding System // Following the Money Trail: US and UK Investigate $20 Billion in USDT Transfers Tied to Sanctioned Russian Exchange // No running of govt from jail, says Delhi Lt Governor // Melco Style Presents “SANRIO CHARACTERS STUDIO CITY CARNIVAL” – Explore a SANRIO World of Unlimited Love and Cuteness // Aid is at the core of Israel, Palestine struggle to control post-war Gaza // A Tightrope Saudi Walk Towards Net-Zero // Digital Hub Unveiled: Xposure Launches Platform for Global Photography Community // Infineon and HD Korea Shipbuilding & Offshore Engineering jointly develop ship electrification technology // Samsung Partners National Heritage Board to Bring a Slice of Singapore’s Cultural Heritage to Samsung The Frame TV // French Leaders Gather for Interfaith Iftar Dinner // Global Audience to Witness Thrill of Dubai World Cup // Saudi Arabia Unveils Green Financing Tool to Achieve Net-Zero Goals // Andertoons by Mark Anderson for Fri, 29 Mar 2024 // New Nylon Constant Torque Hinge From Southco Provides Position Control In A Compact Package // 2024 Lok Sabha Elections Will Be The Costliest One Till Now In The Whole World // Ingdan Announces 2023 Annual Results // Sunshine’s Debut Features Leave Tech World Scratching Its Head // CABSAT 2024 Ushers in 30 Years of Media Innovation //