AUSTRALIAN FINANCIAL REVIEW
19 March 2017
The international tax community is anxiously awaiting the result of Chevron's appeal to the full bench of the Federal Court.
At stake is not just a $280 million bill covering additional tax, penalties and interest claimed by the Australian Taxation Office for the years between 2004 and 2008, or billions of dollars more in additional tax that could result from Chevron's much higher borrowings in subsequent years for construction of the Gorgon and Wheatstone projects.
It's the wider global precedent the ruling could set in establishing new rules around the use of debt and the notion of arm's length pricing for local subsidiaries of multinational companies that is also capturing attention in the tax world.