Legal Aspects of International Trade: BP Plc

RUNNING HEAD: Management 0
BP PLC
Management

Management 1
Executive summary
This report defines the legal aspects of the international trade concerning operations of HP
Plc which is a British international oil and gas company based in London, UK. The company
is operating in Australia from more than 100 years now. The report has identified BP Plc and
its operations. The regulatory framework affecting BP Plc has been described and the way it
affects the company. Further, the treaties and agreements which have impacted company
have been defined in detail.
In the end, it can be concluded that BP Plc is an MNC operating in Australia has been
running successful operations in the country. The agreements have provided a base to the
country for the growth.

Management 2
Contents
Executive summary..................................................................................................... 1
Identification of MNC.................................................................................................. 3
Identification of the Legislative regulatory framework..........................................................3
Identification of the treaties, conventions or agreements........................................................6
References................................................................................................................ 9

Management 3
Identification of MNC
BP Plc (British Petroleum company Plc) is a British international oil and gas company. It is
one of the globe’s 7 major oil and gas company. BP Plc belongs to the petrochemicals
industry. The company sightsees and creates oil and natural gas, refines, markets chemicals,
supplies petroleum products and generates solar energy.
BP Plc had set up its operations back in 1919. The company has employed more than 5700
employees and long term contractors in Australia. The professionals of the company are
engaged in the fields like engineering, science, sales and marketing, and commercial
business. The company is having operations in every state and territory of Australia. The
main offices of the company reset up in Melbourne and Perth. If talked globally, BP Plc has
almost 73,000 employees. The company is having headquartered in London, UK.
Identification of the Legislative regulatory framework
BP Plc comprehends that taxes paid and collected form a substantial part of the economy. It
contributes to the development of Australia. The business activities of the company in
downstream and upstream produce a considerable sum and range of taxes in Australia. BP
Plc pays royalties, corporate income taxes, production taxes, stamp duties along with the
employment and other taxes (Scardamaglia and Adams, 2016). Add on, the company also
pays employee taxes and indirect taxes like excise duty. The organization is dedicated to
complying with tax laws in an accountable manner. It is even having open and positive
associations with the tax authorities. The initiatives are taken by the company to enhance
public trust in the tax systems along with the ingenuities to advance tax regimes. It
encourages investment and economic growth (Smith, 2016). The code of conduct of the
company also defines what is projected of everybody at the organization and the approach to
tax aligns. The values of BP like safety, excellence, respect, and courage has a role in guiding
conduct in the compliance with the tax laws. The commitment and approach of the company
are reinforced by the associations with the governments, tax risk management, and
governance. The tax rate between 2011 and 2015 was 28% on average. In this period, the
income tax payments made were over $1.8 billion. The fuel excise in this period paid were
more than $21.4 billion.