Chevron Accused Of Tax Evasion By Nigerian Government

by Robert Lee, Tax-News.com, London

14 August 2006

US oil giant Chevron has been ordered by the government of Nigeria to pay in excess of $490 million to clear up "irregularities" relating to the company's tax affairs in the country.

According to reports, the House of Representatives has investigated alleged tax evasion and corruption by the firm amounting to some $10.8 billion, but has only been able to substantiate $492 million of this. The company has been ordered to pay within 21 days.

According to the report the multinational paid just $0.249 million tax to its host community as against $25.5 million reported in its 2002 annual tax return to the Federal Inland Revenue Service (FIRS).

The panel also accused the oil company of presenting one tax certificate twice in its return.

Chevron is also accused of claiming capital allowances on assets it never acquired, enabling the firm to evade tax between 1995 and 2002.

The alleged fraud has reportedly been uncovered by ABZ Integrated Limited, a tax consulting firm employed by the government to investigate Chevron's tax affairs. ABZ stands to gain 10% of the $492 million fine.

Chevron has so far not issued comment on the allegations, saying it had yet to see the report.

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