BP is forecast to pay about $10bn less tax over the next four years as it meets the costs of its huge oil spill in the Gulf of Mexico, cutting the revenues of the US and Britain that receive hundreds of millions of dollars from the company each year.
Money spent plugging the well, cleaning up the oil and compensating people who have lost out because of the spill, can be written off against tax, the company believes, reducing the net cost to BP.
Of its principal expected liabilities, only the fines that might be imposed by the US authorities would definitely not be tax-deductible.
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