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

THE AUSTRALIAN
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”.

> Read more: http://www.theaustralian.com.au/business/mining-energy/ato-cracks-down-on-oil-and-gas-giants-over-offshore-cash-transfers/news-story/c202047d470b022afaa0c4e388cc873e