Interest Rates, International Taxation, Transfer Pricing Summary

User Generated

Enan2

Business Finance

Description

1. According to the article, what has been Chevron's practice in charging interest to its Australian subsidiary?


2. Why does the Australian taxing authority dispute Chevron's interest practices?


3. Why does Chevron's CFO claim that this resolution will impact investment in Australia and have implications more broadly around the globe?

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Attached.

Running head: CHEVRON VS. AUSTRLIAN TAX OFFICE

Chevron vs. Australian Tax Office
Student’s Name
Institution Affiliation

1

CHEVRON VS. AUSTRLIAN TAX OFFICE

2

Chevron Corporation is an American-based multinational oil company founded in 1839.
The company has dominated the oil and gas industry since the mid-1940s. It produces, refines
and distributes oil, natural gas, geothermal power, and petrochemicals. Its Australian subsidiary,
Chevron Australia Holdings took the Australian Tax Office to Federal Court over a transfer
pricing assessments made to the company’s subsidiary in the USA. The company owed the
Australian Tax Office over $250million in taxes and risked a tax increment of up to $300million
annually (Long, 2017). The case also had a direct effect on Chevron’s current $42billion loan as
it had a similar structure as the loan in dispute. The Federal Cour...


Anonymous
Super useful! Studypool never disappoints.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Related Tags