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MOBIL HAILS REPEAL OF 'MORE ONEROUS PROVISIONS' OF CALIFORNIA'S UNITARY TAX, AFTER BATTLE LED BY UNITED KINGDOM

 FAIRFAX, Va., Oct. 6 /PRNewswire/ -- Mobil Corporation (NYSE: MOB) Chairman Allen E. Murray said today he was pleased that California Governor Pete Wilson had signed into law a bill that repeals some of the more onerous provisions of the state's unitary tax on multinational corporations.
 "Changing the California tax law, which was viewed as discriminatory by many multinational companies, as well as a number of foreign governments, was a good decision," Mr. Murray said. "It's a positive step that will enhance free trade on both sides of the ocean."
 California's unitary tax, which was last revised in 1986, taxed multinational companies either on the basis of their worldwide earnings, or on their U.S. earnings provided they paid a fee and agreed to extensive disclosure requirements. The tax was viewed as unfair to foreign companies by many trading partners of the United States. Great Britain in particular led the international debate against the tax as not being in accord with internationally accepted arms' length principles and had said that retaliation against U.S. companies operating in the U.K. might be taken.
 As a result of the California tax law modifications, however, Britain has deferred any retaliatory action, a move which Mr. Murray categorized as in keeping with the British Government's desire to promote free trade.
 "More may need to be done, but the recent decisions by both California and Great Britain are encouraging to all of us who believe that a truly global economy is possible," he said. "Obviously, the international community will be watching to see how the new law is implemented. We recognize there will always be differences between nations. Today, however, we have proof that negotiation, rather than retaliation, is the way to solve those differences."
 -0- 10/6/93
 /CONTACT: John Lord of Mobil, 703-846-2500/
 (MOB)


CO: Mobil Corporation ST: California IN: OIL SU:

SH -- NY062 -- 9407 10/06/93 14:33 EDT
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Publication:PR Newswire
Date:Oct 6, 1993
Words:318
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