Oil and gas giant Chevron has settled a long-running transfer pricing dispute with the Australian Tax Office for an undisclosed sum, although the figure is likely to be well in excess of $1 billion.
Chevron had been planning to challenge the matter in the High Court but lodged a notice of discontinuance on August 15, a court spokesman confirmed.
The company’s decision to withdraw is a major win for the ATO and Australian government, which will collect billions of extra tax revenue from a range of other foreign multinationals as a result of the precedent set in this case.
