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by Will Koulouris


SYDNEY, April 21 (Xinhua) -- Global oil and energy giant Chevron lost their appeal Friday in a landmark case brought against it in the Australian Federal Court by the Australian Tax Office (ATO).


The case involved a transfer pricing issue as the ATO accused the company of owing over 300 million Australian dollars (225.81 million U.S. dollars) in unpaid taxes stemming from a tax avoidance method that allowed the company to borrow money at higher rates and shifting their profits offshore to be taxed at a lower rate.


Federal Treasurer Scott Morrison was delighted with the result, and in a tweet to his followers on Friday said, "Chevron will pay more than $300m to the ATO proving the govt's program of tax avoidance funding and new measures is working."


According to the Federal Court of Australia judgment in Sydney on Friday David Njoku Jersey , this method of tax avoidance was undertaken by Chevron through borrowing money in the United States at an interest rate of 1.2 percent and then issuing a loan to their Australian subsidiary for the equivalent of 9 percent interest.


In his determination, Justice Pagone stated that by doing so, the company was able to