“I certainly think it has a signalling effect that’s quite strong,” Stewart said of the ATO’s settlement.

“The [tax] commissioner having a win on a settlement in respect to a transfer pricing ... sends a signal to other Australian or locally based subsidiaries of global corporates that the commissioner is paying attention, that they’re willing to settle, but they will settle only on the basis that they get substantial tax collected.”

Soaring revenue from Australian oil and gas sales - petroleum giant Woodside on Thursday reported a 150 per cent jump in June quarter revenue to $US3.4 billion and another oil major Santos reported record half-year sales revenue of $US3.8 billion - is prompting debate about taxing of resources.

Nobel prize-winning economist Joseph Stiglitz, on a tour of Australia, earlier this week described a windfall profits tax on big businesses, such as mining and gas industries raking in huge profits from booming exports, as a “no-brainer.”

“When you see such redistribution caused by high energy prices, and the money going out of the country because they’re foreign-owned, disproportionately, it seems to be almost a no-brainer,” he said.

Senior economist with progressive think tank the Australia Institute, Matt Grudnoff, said the country taxed its resources sector lightly compared to other regions, particularly places like Norway and the Middle East.

“It’s a big win for taxpayers,” Grudnoff said of the Rio settlement. “Because the resources sector is such a large part of economy, Australia in particular has been missing out on a lot of tax,” he said.

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