What's behind OXY's fluctuating tax expenses since 2022?

Occidental Petroleum (OXY) has experienced a fluctuating tax expense since 2022, which can be attributed to several factors:

1. **Tax Rate Variations**: The tax rate for OXY has shown fluctuations, with a decrease from 0.21% on March 31, 2022, to -0.01% on December 31, 2024. This significant drop in the tax rate could be due to changes in the company's operations, investments, or tax planning strategies.

2. **Income Tax Calculation**: The calculation of income taxes as a percentage of total revenue has also varied. For instance, the tax rate was 0.11% on June 30, 2022, and 0.09% on September 30, 2022. These changes might reflect shifts in the company's revenue streams or profitability patterns.
3. **Taxes Payable**: The taxes payable by OXY have shown a decreasing trend, from $1.79 billion on March 31, 2022, to -$49 million on December 31, 2024. This substantial drop could be influenced by the company's financial performance, tax planning, or adjustments in tax liabilities.

4. **Global Operations**: OXY's tax strategy is influenced by its global operations, including the UK, where the company has a relatively small business with profits attributed according to OECD guidelines. Changes in the tax requirements or compliance practices in the UK or other jurisdictions could impact the overall tax expense.
5. **Corporate Governance**: The company's strong corporate governance policies and commitment to ethical standards might influence its tax practices, ensuring compliance and responsible tax management.

In conclusion, OXY's fluctuating tax expenses since 2022 are likely a result of a combination of factors including changes in tax rates, income calculations, taxes payable, global operations, and corporate governance practices. These factors collectively impact the company's overall tax expense and reflect the dynamic nature of corporate tax management.