Fairfax Media reported that Glencore took out $3.4bn in loans from its associates overseas, then claimed tax breaks in Australia on the huge interest payments. The loans carry interest rates of up to 9%, Fairfax said, double what the company would have paid by borrowing from Australian banks. The apparent loophole was identified in an independent analysis of the company’s accounts carried out for Fairfax Media by a multinational financing expert, who was not identified. The reality is that the whole of the Glencore Xstrata Group is now run as a series of business units controlled by one company (Glencore Xstrata Plc, incorporated in the UK, listed on the London and other stock exchanges), with its registered office in Jersey (a tax haven) and its head office is in Baar (Switzerland), the expert report to Fairfax said. The truth is that Glencore Coal Investments Australias operations in Australia are, because of the groups business model, branch operations of the Swiss-domiciled parent entity, which uses the now dormant legal shell of an Australian body corporate in an attempt to hide the reality of its branch business in Australia.”
Posted on: Fri, 27 Jun 2014 01:43:13 +0000
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