You Cheeky Buggars!

Deloitte Access Economics prepared a report for the Minerals Council Australia stating that although the major mining companies hadn’t paid a lot of tax, they had paid a total of $185 billion in company tax and royalties. To claim that royalties somehow represent a payment of tax is extraordinary – royalties are payments for goods that belong to the people that a private company removes from the peoples’ possession and on-sells. In other words, its the wholesale price of the iron ore that it mines that the company then retails to their customers. Its not tax, its a legitimate (and largely cheap) price that the company pays for raw product.

When BHP, a company established in Australia, exporting iron ore that once belonged to Australia, sells its ore overseas it claims that its owned by the Singapore marketing hub of BHP so no tax is payable in Australia. The ATO believes (I assume by the court cases that are pending)  that this is an accounting fiction and is suing for outstanding tax and penalties of $1 billion.

Its time the mining industry and its minders faced up to their responsibilities as far as tax payments and their responsibility of compensating the Australian people for the product they take and the impact they have on the Austrlaian land mass.