BP settles $US379m tax dispute with Alaska

(Alaska) agreed on New Year’s Eve to deposit $US379m (£191m) in
the state of Alaska’s main savings account, settling a dispute over its
corporate income tax liabilities for 2000-02.

Sarah Palin, the Alaska state governor, said she was pleased with the
settlement and appreciated ‘BP’s willingness to work with the state of Alaska
and come to a fair resolution’, according to Financial Times.

The payment, on behalf of the BP subsidiary, is another blow to BP which is
still under investigation by state officials for a 2006 oil spill in Prudhoe Bay
which cost the company $US20m in fines.

BP is reconsidering its future oil developments in Alaska after the state
last month enacted legislation which increase tax on the oil industry, boosting
the rate from 22.5% to 25% of the net value of oil.

Further reading:

BP cuts spending after $US1.5bn tax slug

story in the Financial Times

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