U.S. oil giant Chevron has hit back at London-based International Transport Workers Federation (ITF) which accused Chevron of using secretive corporate structures and aggressive tax evasion schemes to reduce its tax in the UK.
In a statement sent to Offshore Energy Today, Chevron said this: “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 North Sea Limited, Chevron’s UK subsidiary has interests in 10 offshore producing fields in the United Kingdom. It operates three fields and has interests in seven non-operated fields.
Regarding the tax evasion claims, Chevron further said: “In the past 10 years, Chevron’s North Sea related activities have generated a tax contribution to the U.K Exchequer of more than £3.5 billion. Corporation Tax from North Sea profits is ring fenced by law in the UK and untaxed profits are not taken outside of the UK.”
To remind, in its report, ITF claims that tax avoidance is Chevron’s business model and that the company uses cash pooling and offshore accounts, which helps to avoid tax obligations.
Steve Cotton, ITF General Secretary, said that the report laid out in detail the secretive corporate structures used by Chevron and now copied by other oil companies.
“The public would be shocked to see how Chevron uses a complex web of companies to route money through the Netherlands, Bermuda and other tax havens.”
Cotton has called on the UK Parliament to establish an inquiry to investigate the corporate structures used by the oil companies operating in the North Sea and the impact they have on security, taxes and royalties. In his belief, the public will demand action from political leaders regarding the facts stated in the report.
Offshore Energy Today Staff