A mining and energy multinational has withdrawn its court appeal against a massive bill for its offshore tax practices, meaning $340 million will find its way back into the government’s coffers.
Chevron had launched a High Court appeal against the ATO’s finding that it owed $340 million in back taxes and penalties for making interest payments to related offshore parties.
In April this year, the Federal Court had upheld the ATO’s decision, prompting Chevron to take the matter to the High Court.
In a statement welcoming the resolution of the massive investigation, Minister for Revenue and Financial Services, Kelly O’Dwyer, said the case would have a huge benefit for the Australian economy.
“The ATO’s initial estimates are that the Chevron decision will bring in more than $10 billion dollars of additional revenue over the next 10 years in relation to transfer pricing of related party financing alone,” she said.
“Not only does this result put more revenue back to the Australian people, it also strengthens the ATO’s position in pursuing other arrangements where multinationals seek to dodge Australia’s transfer pricing rules.”
Ask the Experts: Does automation stack up financially?
By Christopher Overton
Opinion: How bad do things have to get?!
By Adam Zuchetti
Business lessons from the All Blacks
By Steve Stanley