The audit is part of the ATO’s wide-ranging crackdown on multinational companies reducing their tax in Australia by using offshore entities.
Almost all the major resources companies operating in Australia have been put under the taxman’s microscope.
Schlumberger’s payment comes in relation to historic transfer pricing matters along with tax payable in respect of 2014 profits, and is valued at $US38.3 million ($A51.9 million).
Transfer pricing is the practise where goods and services are traded within the same company, often using subsidiaries in different jurisdictions, which allows companies to shift profits to regions with low tax rates.
While not illegal, the ATO has been pursuing companies that it believes to be improperly using transfer pricing to erode the Australian tax base.
The Texas-based Schlumberger, which has a market capitalisation of more than $US100 billion, reportedly runs its Australian business out of the Caribbean tax haven of Curacao.
Schlumberger is a major contractor to most of the world's big oil and gas companies, and is a leader in fraccing and drilling technologies.
Both BHP Billiton and Chevron Corporation are in the ATO’s sights over their use of subsidiaries in Singapore to reduce tax payable on Australian production.
In April BHP confirmed that it was being audited by the ATO and that it intended to fight a claim that it owes $522 million in unpaid taxes, while Chevron has called in the lawyers to contest a $322 million bill.
On Friday Schlumberger’s parent beat profit expectations for the June quarter with income of $US1.12 billion, down 17% from the previous quarter and also down 38% year-on-year.
The results were still better than expected given the dramatic decline in North American land activity as the rig count dropped by a further 40% and as pricing erosion continued in both North America and the international areas.
In early January Schlumberger revealed plans to cut 9000 jobs while in the March quarter results it announced another 11,000 to take the 2015 total to 20,000 – equivalent to shedding about 15% of the total workforce.
