AusBN - Chevron Australia is facing a tax bill of AUS$314 million after failing to overturn a Federal Court judgement being pursued by the Australian Taxation Office (ATO).
The Federal Court assessments relate to interest paid by Chevron Australia to its US subsidiary Chevron Texaco Funding Corporation over five financial years from 2004 to 2008.
In doing so, the ATO ruled that the energy giant had reduced its liability by moving profits offshore.
“Chevron will pay more than $300m to the ATO proving the government’s programme of tax avoidance funding and new measures is working,” said Treasurer Scott Morrison in a tweet after Friday's ruling.
The landmark tax bill is set to become one of the largest in recent Australian judicial history.
Following the court declaration, Chevron Australia declared that since 2009 the company had paid nearly $4 billion in federal and state taxes and royalties.