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Chevron loses Aussie tax appeal

Federal Court dismisses US supermajor's appeal against a tax bill of A$340m

Chevron has lost an appeal against a tax bill of A$340 million (US$260 million) demanded by the Australian Tax Office.

The full bench of the Federal Court dismissed the appeal against an earlier ruling that Chevron underpaid taxes by setting up a A$2.5 billion intercompany credit facility with an abnormally high interest rate which effectively lowered its taxable income within Australia, reported Reuters.

The judgment in the case covers the five tax years from 2004 through till 2008.

"The economic effects of the internal financing structure put in place...included CAHPL's (Chevron Australia Holdings Pty Ltd's) Australian taxable income being reduced by the deductions it claimed for the interest payments it made to its United States subsidiary," the court said in its latest ruling, added Reuters.