CANBERRA, Australia (AP) — An Australian subsidiary of U.S. energy giant Chevron Corp. has lost a court appeal against a 340 million Australian dollar ($260 million) tax bill in a ruling with ramifications for how multinational corporations transfer money.
Three judges of the Australian Federal Court unanimously rejected on Friday Chevron Australia’s appeal against tax assessments for five years ending 2008.
The court found the company had reduced its Australian tax debt through 9 percent tax-deductible interest payments on a $2.5 billion loan from U.S.-based subsidiary Chevron Texaco Funding Corp.
The Australian Taxation Office welcomed the ruling which it said had direct implications for other cases the office was pursuing regarding loans within multinational corporations.
Chevron said it might appeal to the High Court of Australia.