Shell appeals tax decision over Australian gas stake

Bloomberg

Royal Dutch Shell Plc is appealing a decision by the Australian Taxation Office that has left the company with a bill estimated at A$755 million ($510 million), the Guardian reported.
The ATO has been battling with Shell’s local subsidiary for six years regarding tax treatment of its stake in the Browse gas project off the country’s northwest coast, the newspaper reported, citing court documents. The bill relates to a dispute over A$2.2 billion in tax deductions for the project, the newspaper said.
“We are engaging with the Australian Taxation Office with a view to confirming the correct tax outcome of Shell’s 2012 acquisition of interests in the Browse project,” a Shell spokesperson said in an emailed statement. “Shell complies with all its legal and taxation obligations and is committed to paying the right amount of tax under the letter and the spirit of the law in all countries in which we operate.”
Royal Dutch Shell Plc has taken the plunge into Australia’s energy market with a $418 million deal to buy ERM Power Ltd., the nation’s second-largest electricity retailer to commercial and industrial customers, as it drives towards a goal to become the world’s top power producer by 2030.