• 4 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 7 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 11 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 15 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 8 hours Adsorbent natural gas tanks are revolutionary.
  • 7 hours Apartheid Is Still There: Post-apartheid South Africa Is World’s Most Unequal Country
  • 2 hours Visualizing How Much Oil Is In An Electric Vehicle (Hint: a heckuva lot)
  • 8 hours Evil Awakens: Fascist Symbols And Rhetoric On Rise In Italian EU Vote
  • 31 mins Total nonsense in climate debate
  • 4 hours Theresa May to Step Down
  • 10 hours IMO2020 To scrub or not to scrub
  • 23 hours Look at the LONGER TERM bigger picture of international oil & gas. Ignore temporary hiccups.
  • 16 hours IMO 2020 could create fierce competition for scarce water resources
  • 1 day IRAN makes threats, rattles sabre . . . . U.S. makes threats, rattles sabre . . . . IRAQ steps up and plays the mediator. THIS ALLOWS BOTH SIDES TO "SAVE FACE". Then serious negotiations start.
  • 1 day Apple Boycott in China
  • 20 hours Why is Strait of Hormuz the World's Most Important Oil Artery
  • 4 hours BBC: Proposal to spend 25% of EU budget on climate change
  • 1 day Australian Voters Reject 'Climate Change' Politicians
Libyan Oil Industry Stable Despite ISIS Return

Libyan Oil Industry Stable Despite ISIS Return

Libya’s oil industry reported its…

Australian Senate Grills Exxon On Tax Avoidance

Offshore

An Australian Senate commission looking into tax avoidance practices among large international companies operating in the country questioned Exxon about not paying any taxes since 2013, despite turning in a profit every year since then.

The company said it was investing heavily in new projects in Australia, adding it will restart tax payments in three years. “The only reason we’re not paying tax at the moment is because we just invested US$16.5 billion (A$21 billion),” the regional chairman of Exxon, Richard Owen, told the commission.

The tax avoidance investigation was spurred by a Federal Court ruling that another supermajor, Chevron, had shifted profits from Australia to the United States using an intra-company loan mechanism. The company had appealed a decision by the Australian Tax Office at the Federal Court. Later, Chevron settled with the authority, agreeing to cough up an undisclosed sum.

At the time, many saw the court ruling and the settlement as harbingers of more suits, and the tax agency did not disappoint. It is currently probing Rio Tinto, BHP Billiton, and other oil companies for tax evasion schemes.

Related: OPEC Deal In Jeopardy As Iran And Saudi Arabia Square Off

Exxon said it will be paying around US$470 million annually in taxes in Australia from 2021 onwards, with the company’s tax manager adding the giant Gorgon LNG project offshore Australia will only begin paying petroleum resource rent tax in the mid-2030s. For the period 2007 to 2017, according to Reuters, ExxonMobil Australia has had an effective tax rate of more than 50 cents for every dollar, including income tax and the petroleum resource rent tax.

The supermajor caught the authorities’ attention with an internal loan that they apparently saw as similar to the loan that pushed Chevron to settle after violating the arm’s length rule for internal loans, which seeks to prevent tax evasion. Exxon said its loan was very different from Chevron’s, with the interest rates at 3-5 percent.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News