How to Talk Tax in The Boardroom: Lessons learned from Rio Tinto & BHP Billiton case study
- Steef Huibregtse
- Dec 6, 2019
- 1 min read
By: e-bright.
In this case study boards will be addressing whether:
Management have properly considered and evaluated the operational, legal/compliance and reputational risk of the proposed structure to set up a Singaporean hub.
To lobby or not against the Australian government proposals to introduce super profit taxes in the industry.
To put in place a strategy to manage the reputational risks involved in the Singaporean structure.
To proactively disclose information in the context of investigations by the Australian authorities.
And when to disclose tax liabilities and potential liabilities arising from investigations those shareholders and the public.
To settle or litigate tax disputes and how to manage the reputational risks.
To implement CSR strategies in the group and how to evaluate the impact of CSR considerations on business activities and reputation – weighing social and community interests against other business interests.
To establish new operations in high risk jurisdictions and what risk considerations to take into account.
Current state of the proceedings in the Rio Tinto and BHP case:
BHP settled with the ATO and agreed to pay approximately A$529 million ($384.5 million) in additional tax for the income years 2003 to 2018 in relation to a dispute over the amount of Australian tax payable as a result of the sale of BHP’s Australian commodities to BHP’s Singapore marketing business. From July 2019, BHP Group increased its ownership of BHP Billiton Marketing, which is the main company conducting BHP’s Singapore marketing business, from 58% to 100%.
Download the full case study here:
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