BHP takes the ATO to court..!
This all started last year when the ATO decided to abolish an excise exemption over BHP‘s gas field in the North West shelf. This meant that BHP and its partners would be liable for up to $500m in excise duties..!
Rather than directly attacking the ATO about this unexpected development, BHP decided to adopt a more subtle tack…
They decided to wholeheartedly agreed with the new law and instead, are arguing that the North West shelf comprises of several gas fields NOT one giant gas field.
This would mean that each gas field would fall under a separate production threshold which would effectively reduce the excise tax liability for the companies involved.
Will it work?
Only time will tell but you have to appreciate the creativity and finesse that the BHP tax advisors had dealt with this issue. With the amount of money involved, it is definitely worth a try..!
From the Taxabull team.
#1 provider of Australian tax information on twitter
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