SYDNEY MORNING HERALD
18 May 2016
Secretive oil major Chevron Corp has taken the art of tax avoidance to its ultimate form thanks to a scheme so aggressive that it goes beyond merely reducing exposure to income tax, but rather, has been designed to make a profit from the Australian Tax Office.
These are the findings of a report, commissioned by unions in the United States and obtained by Fairfax Media, that describes Chevron's Australian arrangements as "a sham".
By exploiting loopholes to claim tax relief on "artificially created interest payments", Chevron has "actually profited from the act of borrowing money at the expense of Australian taxpayers. It goes beyond any commercial objective of providing debt finance leverage to the point where the value of its tax benefits from interest deductions exceeds the actual before-tax cost of the loan".