UPDATE: Oil Tax Schemes Denied by Chevron

Published at 08:11AM - 26/08/16

Chevron has strongly denied the use of oil tax schemes and alleged it has paid more than £3.5 billion in taxes to the UK government over the past ten years.

This comes in response to the International Transport Workers’ Federation (ITF) claims that the company used “secretive corporate structures and aggressive tax minimisation schemes”.

“Chevron North Sea Ltd fully complies with all tax laws relating to its North Sea UK interests and the allegations made by the International Transport Workers’ Federation are incorrect,” Chevron said in a statement sent by email.

UPDATE: Oil Tax Schemes Denied by Chevron

“In the past 10 years, Chevron’s North Sea related activities have generated tax contribution to the UK Exchequer of more than £3.5 billion,” the company informed.

“Corporation tax from North Sea profits is ring fenced by law in the UK and untaxed profits are not taken outside the UK,” it added.

The report disclosed by the ITF exposed tax schemes used by major North Sea producers, using Chevron as an example of an oil major that routes money through tax havens.

According to the report, tax receipts collected by the UK government on North Sea oil production are accounting for less and less of all tax receipts collected by the government since the mid-1980s.

Call Out for UK Government Action

ITF General Secretary Steve Cotton said these secretive corporate structures used by Chevron have since been copied by other oil and gas companies operating in the North Sea.

“It is well documented that both Shell and BP are using similar corporate structures to reduce their tax in the UK. Both BP and Shell in 2014 paid no UK corporate tax,” he stated further.

“The UK government needs to investigate and set up action to clamp down on any inappropriate tax loopholes being exploited by Chevron to make sure UK taxpayers are not taken for a ride and pay its fair share,” the Scottish Secretary of trade union Unite, Pat Rafferty, said.