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Shell Sued by Australian Tax Office Over Browse Stake

Matthew Burgess and Franz Wild
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Shell Sued by Australian Tax Office Over Browse 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 the 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.”

(Corrects to remove reference to Shell being sued by ATO.)

To contact the reporters on this story: Matthew Burgess in Melbourne at mburgess46@bloomberg.net;Franz Wild in London at fwild@bloomberg.net

To contact the editors responsible for this story: Shamim Adam at sadam2@bloomberg.net, Edward Johnson

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