BHP Billiton today welcomed the opportunity to provide a submission to the Senate Inquiry into Corporate Tax Avoidance and Minimisation.
In its submission, BHP Billiton said that as demonstrated by the work undertaken by the OECD, issues around base erosion and profit shifting (BEPS) are complex and multi-layered, requiring a carefully considered and coherent package of measures to address them.
“We fully support the BEPS Action Plan being pursued by the OECD and supported by the G20 in relation to international tax reform,” said Tony Cudmore, President Corporate Affairs.
“At a time of subdued global growth it is critical that unilateral action does not act as an impediment to cross border trade and investment, thereby placing further pressure on economic growth.”
Mr Cudmore went on to say that as a significant payer of taxes in Australia and globally, BHP Billiton’s tax arrangements are subject to robust scrutiny.
“BHP Billiton takes its tax and transparency obligations very seriously – last financial year we paid more than US$8 billion in taxes and royalties in Australia and we are the nation’s largest corporate taxpayer. Taxes and royalties paid last year delivered an effective tax rate of more than 45 per cent,” he said.
“Globally we paid US$9.9 billion in taxes, royalties and certain indirect taxes last financial year.”
In addition, Mr Cudmore said that BHP Billiton has developed its own Transparency Principles and supports a number of transparency initiatives, evidenced by BHP Billiton’s voluntary and active participation.
BHP Billiton is a founding signatory to the Extractive Industries Transparency Initiative (EITI) and an active member of the international board. The voluntary tax and royalty disclosures on a country-by-country basis in BHP Billiton’s annual Sustainability Report include country-by-country data.
A copy of BHP Billiton’s submission can be found here.
For more information, please see the News Release.