On 21.9.16, BHP Billiton released its Economic contribution and payments to governments Report which shows the company’s total economic contribution globally in the 2016 financial year was US$26.7 billion. This includes US$3.7 billion globally in taxes, royalties and other payments to governments.
Releasing the report, BHP Billiton Chief Financial Officer Peter Beaven said the company’s adjusted effective tax rate in the 2016 financial year was 35.8%. When royalties are included, he said the rate is more than 58%. “The company’s adjusted effective tax rate averaged 31.9% over the past decade, and 39.8% when royalties are included,” Mr Beaven said. Over the last decade, he said the company’s average effective tax rate was higher than the 30% company rate in Australia and the average OECD rate of 25%. In the last decade, BHP Billiton has paid approximately US$85 billion globally in taxes, royalties and other payments to governments, including US$58 billion (A$65 billion) in Australia.
Mr Beaven said debates about tax “need to be informed by facts”. It was crucial, he said, “that the conversation addresses how tax systems take into account the realities of operating in a global economy as well as national interests”. This will enable stable investment environments that encourage growth and development, Mr Beaven said.
[BHP media release] [BHP Report] [LTN 183, 21/9/16]