Chevron has lost a landmark appeal in the Federal Court today and will have to pay over $250 million in back taxes and an estimated $60 million in fines.
Paddy Crumlin, ITF President welcomed today’s decision and said Chevron needed to come clean and pay its fair share of taxes.
“This demonstrates the complete disregard Chevron has for Australia and the lengths it will go to avoid its obligations.
“The scheme rejected today was for $2.5 billion in high interest related party debt.
“The ATO is now examining a similar $35 billion Chevron tax scheme. In light of this decision this audit is now the most important the ATO has ever undertaken.
“With LNG exports expected to triple in the next few years it is critical that tax authorities and governments take a very close look at how Chevron structures its’ tax arrangements.
“Billions of dollars of tax revenue could be lost to the Australian people unless the government takes an aggressive approach to major tax minimisers like Chevron” Mr Crumlin said.
ITF is the international transport union’s federation representing around 700 unions, and more than 4.5 million transport workers from 150 countries.
Chevron is leading the development of the world’s largest LNG project, Gorgon on a Class A Nature Reserve at Barrow Island, off the coast of Western Australia. The project is costed at US$ 54 billion so far and is the largest resource project in Australia.
Chevron’s Australian tax arrangements are detailed here.