BP settles $379M in prior year taxes

Gov. Sarah Palin announced Dec. 31 that the State of Alaska and BP Exploration (Alaska) Inc. have resolved a tax dispute concerning outstanding corporate income tax liabilities.

The taxes related to disputed amounts for tax years 2000 through 2002. Alaska tax statutes require the specific terms and conditions of the dispute and agreement to be kept confidential.

“I am very pleased with this settlement and appreciate BP’s willingness to work with the State of Alaska and come to a fair resolution,” Palin said.

BP agreed to make the payment of $379 million on Dec. 31. The governor’s office said the funds will be deposited in the Constitutional Budget Reserve, which was created as the state’s main savings account by a vote of the people in 1990.

—Petroleum News