As the Sydney Morning Herald has reported:
The federal government is expected to score a $10 billion windfall over the next decade after multinational oil giant Chevron abandoned an appeal against the Australian Tax Office in the High Court.
In a settlement believed to be worth more than $1 billion, the US company's case hands Australian authorities a precedent that will shape all future tax arrangements for multinational resources companies.
As the report makes clear:
The ATO's initial estimates are that the Chevron decision will bring in more than $10 billion dollars of additional revenue over the next 10 years in relation to transfer pricing of related party financing alone
Full marks here to Jason Ward of Tax Justice Network Australia who drove the work challenging Chevron in the public domain, which in turn fuelled the Australian Tax Office (ATO) on this issue . On and off I assisted Jason along the way, although that only featured once on this blog. This is a stunning victory for tax justice campaigning and the tenacious team down under. I am delighted for them and the people of Australia who get the chance to enjoy more of what is rightfully theirs.