ATO cracks down on oil and gas giants over offshore cash transfers

Ben Butler
5 April 2017

The Australian Taxation Office has launched a sweeping crackdown on multinational oil and gas companies, accusing them of artificially pumping up billions of dollars in interest payments sent offshore to reduce tax bills here.

“There are a number of audits in relation to taxpayers in the oil and gas sector already on foot in varying stages of progress,” the ATO said in a new submission to a Senate inquiry into corporate tax avoidance.

The ATO said contrary to the principle established in a recent Federal Court victory over US oil and gas giant Chevron, a number of industry players were striking loan deals with overseas parents that “do not reflect commercially rational behaviour”.

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