Chevron loses appeal against $260 million Australia tax bill

CANBERRA, Australia (AP) — An Australian subsidiary of U.S. energy giant Chevron Corp. lost a court appeal on Friday against a 340 million Australian dollar ($260 million) tax bill in a ruling with ramification for how multinational corporations transfer money.

The court found the company had reduced its Australian tax cost through 9 percent tax-deductible interest payments on a $2.5 billion loan from U.S.-based subsidiary Chevron Texaco Funding Corp., which had borrowed the money at a lower rate.